USD/JPY Outlook: new China tariffs send dollar lower on increased safe-haven demand

Slobodan Drvenica Windsor Brokers

USD/JPY

The pair fell to daily low at 106.38 after China announced its tariff retaliation, materializing their earlier warning about response to new US tariffs on imports from China from 1 Sep. Dovish comments from Fed's Bullard, just hours ahead of Powell's speech, added to negative sentiment, as traders already turned into safe-have after Chinese announcement. Fresh easing moved the price away from key barriers at 106.68/66 (20DMA / Fibo), but rising bullish momentum and north-heading stochastic support near-term action, ahead of today's key event, Fed Powell's speech in Jackson Hole symposium.

Res: 106.68; 106.97; 107.13; 107.57
Sup: 106.38; 106.27; 106.16; 105.65

Interested in USD/JPY technicals? Check out the key levels

1. R3 107.05
2. R2 106.85
3. R1 106.65
PP 106.45
1. S1 106.24
2. S2 106.04
3. S3 105.84

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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