USDJPY trades 0.27% higher at 109.03 in a fresh attempt to regain the 109 mark as the pair continues the consolidation close to five-month highs as investors run away from safe-haven assets on positive signs in China-US trade talks.
China earlier today cut the seven days reverse repo rate to 2.50% also helping risky assets. Traders are waiting for comments from President Trump on the state of trade talks that might provide some volatility in the markets.
On the technical side, USDJPY enhances the bullish momentum which started after the pair broke above the 50 and 100-day moving averages, while as of writing the pair tests the 200-day moving average. On the upside, immediate hurdle stands at 109.06 daily top, a convincing break above will attract more bids that can drive the pair up to 109.31 the high from July.
On the downside, immediate support for USDJPY will be met at 108.66 today’s low while extra bids will emerge at 108.23 the 50-day moving average before a test of the strong support at the 100-day moving average around 107.69. USDJPY technical picture is bullish now, and a credible close above the 109 mark might be the start of another leg higher.More content