Recalling our previous update in the USD/JPY, we suggested staying bullish above 108.700 with a target of 109.100 and 109.350. So far, the USD/JPY is trading in line with our forecast.
The bullish trend in the USD/JPY currency pair due to diminishing safe-haven appeal, which is causing a sell-off in the safe-haven assets such as gold and Japanese yen.
Chinese Ministry of Commerce stated that the US and China's trade negotiators endured another phone call on Tuesday morning.
Chinese Vice President Liu He spoke on the phone with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchi. With this, the trade deal sentiments remain on the stronger front.
On the other hand, the United States economic events were in favor of US dollars, such as the trade balance, new home sales, and housing price index. These events are fundamentally supporting the USD/JPY.
|
Support |
Pivot Point |
Resistance |
|
108.91 |
109.02 |
109.17 |
|
108.76 |
109.29 |
|
|
108.49 |
109.56 |
On the technical front, the USD/JPY is staying bullish above 109.100, having closed bullish candles above the violated resistance area. The leading indicators, such as RSI and MACD, are still holding in the buy zone, extending support to the USD/JPY.
Bullish may continue to trade bullish until 109.400 resistance target is met.
USD/JPY - Trade Setup
Buy Above 109.100
Take Profit 109.350/450
Stop Loss 108.850
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