USD/JPY breaks above key trendline, hits two-week high on the EU migration deal

The USD/JPY hit a two-week on Friday as EU migration deal put a bid under risk assets.
The currency pair breached keep falling trendline (drawn from May 21 low and June 15 low).

Omkar Godbole FXStreet Contributor

The risk assets are on the rise and the safe havens and the funding currencies like the Japanese Yen are being offered across the board on the news that European leaders have reached an agreement on migration.

The USD/JPY pair jumped to 110.79 - the highest level since June 15 and was last seen trading at 110.75. Also, the currency pair has crossed 110.68 - resistance of the trendline sloping downwards from the May 21 low and June 15 low.

So, the narrowing price range has ended with an upside break? Not really, as a breakout would be confirmed only if the pair closes today above 110.68.

However, with risk assets reporting gains, the probability of a strong close above 110.68 is quite high. At press time, the S&P 500 futures are up 0.30 percent.

USD/JPY Technical Levels

Resistance: 110.90 (June 15 low), 111.40 (May 21 high), 111.62 (50% Fib R of December 2016 high - March 2018 low)

Support: 110.18 (200-day MA), 109.80 (bullish 50-day moving average), 109.37 (June 25 low).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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