USDJPY Unfazed by Data, Bulls in Control Above 108

USDJPY trades 0.15% lower at 108.54 as the pair consolidates below two-month highs as investors dump safe-haven assets on positive developments in China-US trade war and Brexit. On the data front United States Initial Jobless Claims came in at 212K below forecasts of 215K in October 18. Durable Goods Orders came in at -1.1%, below expectations of -0.8% in September. In Japan the August final leading index indicator came in 91.9 versus the preliminary reading of 91.7. Japan preliminary PMIs for October Manufacturing came in at 48.5 below the previous reading 48.9. Moody’s reaffirmed Japan the A1 rating with a stable outlook.

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USDJPY Technical Analysis

On the technical analysis side, USDJPY keeps the rebound alive which started early October breaking above the 50 and 100-day moving averages. On the upside where traders have turned their attention now, immediate resistance stands at 108.74 daily high, a convincing break above will attract more buyers that can drive the prices up to 109.05 the 200-day moving average. Long positions can sit comfortably as long as the pair trades above 108. On the flip side, immediate support for USDJPY stands at 108.50 today’s low while extra bids will emerge at 108.24 the low from yesterday’s session before the strong support at the 100-day moving average (107.55). USDJPY technical picture is bullish now, and an attempt to 109 looks possible.

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