USD/JPY Analysis: bulls targeting 109.31
|USD/JPY Current Price: 108.84
- China’s Foreign Ministry said that they are “on the same page” that the US.
- Japanese data keeps signaling slowing economic growth at the end of Q3.
- USD/JPY bullish on sentiment, heading toward August highs.
The USD/JPY pair has reached 108.89 this Tuesday, a level last seen early August as the Japanese currency got dumped on risk-on. Renewed hopes that the UK and the EU will reach a deal on Brexit this week boosted the market’s sentiment. Meanwhile, the Chinese Foreign Ministry said that the country will speed up orders for American agricultural products, adding that both countries are “on the same page and have no difference in the stance on reaching a trade deal,” adding to the positive sentiment. US Treasury yields rose, with the benchmark 10-year Treasury yield hitting 1.77%, and Wall Street surging to fresh monthly highs.
Japan data came in mixed, as the August Tertiary Industry Index rose by 0.4% much better than the -0.2% expected. Industrial Production in the same month, declined as expected by 1.2% MoM and by 4.7% YoY, while Capacity Utilization plummeted by 2.9%. The country won’t release relevant data this Wednesday.
USD/JPY short-term technical outlook
The USD/JPY pair is up for a fifth consecutive day and a couple of pips below the mentioned daily high, with scope to continue recovering toward August monthly high at 109.31. In the 4 hours chart, the pair met buyers around a sharply bullish 20 SMA, which keeps advancing beyond the larger ones. The RSI indicator consolidates at around 76, while the Momentum retreats within positive levels, rather reflecting decreased demand by the end of the day, than suggesting an upcoming slide.
Support levels: 108.60 108.20 107.95
Resistance levels: 109.00 109.35 109.60
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.