USD/JPY: risk appetite is improving with the US-China last news [Video]
|USD/JPY
With the US and China seemingly coming to some sort of phase one agreement on trade, risk appetite is improving. This is hitting the yen. A strong bull candle on Thursday was followed by something more questionable on Friday, but the bulls on USD/JPY are far better positioned coming into the new week. Trading above 109.00 gives the chart a more positive outlook, whilst the momentum indicators are positively configured still. However, as so often with Dollar/Yen there is always a caveat. Friday’s high was again almost bang on resistance of 109.70 and the market looks tentative again today. Breakouts on this chart are never straight forward and initial rejections are commonplace. However, weakness is a chance to buy as the run of higher lows is ongoing. Continued closing above 109.00 will maintain a degree of bull confidence. A breakout above 109.70 would open 109.90 and more considerable resistance at 110.65. The importance of support at 108.40 is growing.
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