USDJPY trades 0.02% lower at 108.91 as the pair continues the consolidation below two-month highs as investors run away from safe-haven assets on positive developments in China-US trade deal and Brexit. On the economic data, France Consumer Confidence came in at 104 in line with analysts expectations for October. In Japan the Tokyo Consumer Price Index (year over year) came in at 0.4% below expectations of 0.5% in October.
Traders expect that Fed will cut interest rates for third time by 25 bps tomorrow. Mario Draghi in a speech yesterday reiterated his call on European governments to take further action to boost the economy.
On the technical side, USDJPY keeps the positive momentum alive which started early October breaking above the 50 and 100-day moving averages, while as of writing the pair tests the 200-day moving average. On the upside where traders have turned their attention, immediate resistance stands at 109.06 daily high, a convincing break above will attract more buyers that can drive the prices up to 109.31 the high from July. Long positions can sit comfortably as long as the pair trades above 108.
On the flip side, immediate support for USDJPY stands at 108.82 today’s low while extra bids will emerge at 108.65 the low from yesterday’s session before the strong support at the 100-day moving average around 107.57. USDJPY technical picture is bullish now, and an attempt above109 looks possible.Download our latest quarterly market outlookfor our longer-term trade ideas.
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