Slobodan Drvenica
Windsor Brokers
USD/JPY
The pair regained traction on Friday and moved higher after holding in red for five consecutive days.
Pullback from double-top at 109.48 was contained by rising daily Kijun-sen and fresh optimism on positive signals from US/China trade talks inflated dollar.
Larger uptrend off 104.44 (26 Aug low) is still in play, despite Thursday's dip and close below the bull-trendline (108.61), but recovery needs return and weekly close above the trendline to generate positive signal.
Next pivotal barriers lay at 108.90/99 (converging 10/200DMA's, on track to create golden-cross) break above which is needed to confirm reversal.
Weak daily momentum requires caution, as repeated close below broken bull-trendline would generate negative signal for extended pullback towards 108.04 (55DMA) and 107.88 (1 Nov trough).
US retail sales (Oct 0.2% f/c vs -0.3% Sep) and industrial production (Oct -0.4% f/c vs -0.4% Sep) are key events today and may provide fresh direction signals.
Res: 108.75; 108.90; 108.99; 109.28
Sup: 108.36; 108.23; 108.04; 107.88
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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