USDJPY trades higher for fifth consecutive trading session amid USD strength across the board. Investors dumb safe-haven assets as we approach the beginning of trade negotiations between the USA and China. A less dovish Fed also helps USD. Japanese data still coming mixed; today the Japan Tankan Large Manufacturing Index came in at 5, beating forecasts of 2 in 3Q, 2019. Japan September vehicle sales came in at 12.8% while the previous reading was at 4.0% y/y.
On the technical side, USDJPY trades 0.28% higher at 108.38 as the rebound which started last week from 106.95 lows continues with the pair breaking above the 100-day moving average. The pair hit the daily low at 108.03 and the daily high at 108.42.
The positive momentum for USDJPY gains traction as the pair managed to break out of the descending channel which drove the pair since April. On the upside first resistance stands at 108.42 the daily high, a convincing break above will attract more bids that can drive the prices up to 109.15 the 200-day moving average. Long positions can sit comfortably as long as the pair holds above 108 for a move up to 200-day moving average, stop-loss orders must be placed at 108 as if the pair breaks below, offers will step in and might push the price down to 107. On the downside, immediate support for USDJPY stands at 108.03 today’s low while extra bids will emerge at 107.78 the 100-day moving average. USDJPY technical picture is bullish now as the pair trades above the 50 and 100-day moving average.Download our latest quarterly market outlookfor our longer-term trade ideas.
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