With risk appetite taking a positive turn on the constructive environment for the trade talks, we see the safe haven yen under pressure. The decisive move above 107.50 opens the resistance at 108.50 again. The move comes with a growing run of higher daily lows (the latest leaving support at 107.00) to drive an improving outlook again. Momentum indicators are improving once more, with the Stochastics swinging higher, MACD lines bottoming above neutral and RSI pushing towards 60 again. A move above 60 on RSI would suggest pressure growing on the 108.50 resistance area and potential to push on and test key multi-month resistance at 109.00.The mini breakout leaves 107.50 pivot as initial support, whilst the hourly chart shows a near term support band 107.40/107.60 to buy into weakness. Clearly this is a market that has the potential to be negatively impacted by negative newsflow surrounding the US/China talks, but coming into today’s session the technical outlook is certainly improving.
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