- The USD/JPY pair held on its positive tone through the early North-American session, albeit struggled to make it through a one-week-old ascending trend-line resistance.
- Meanwhile, the fact that the pair has managed to hold above its important intraday moving averages - 50, 100 & 200-hour SMAs, support prospects for additional gains.
This coupled with the possible occurrence of a golden-cross on the 1-hourly chart, wherein 50-hour SMA is looking to break above 200-hour SMA, further reinforce the constructive outlook amid the prevailing risk-on environment.
However, traders are likely to wait for a sustained break through the mentioned barrier before positioning for any further near-term appreciating move towards testing the 109.25 horizontal support breakpoint turned resistance.
Alternatively, a sustained weakness below the overnight swing low might negate the positive outlook, turning the pair vulnerable to resume its well-established near-term bearish trend and aim towards testing sub-108.00 level.
USD/JPY 1-hourly chart
-636958582550740673.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
Latest Forex News
Editors’ Picks
GBP/USD: Recovery falters just shy of 1.3400 ahead of UK PMIs
GBP/USD recovers nearly 90-pips from Friday’s NY low of 1.3306 but faces stiff resistance at 1.3400. Brexit optimism to keep the sentiment lifted around the pound. The focus remains on the UK Markit Preliminary PMIs ahead of BOE.
EUR/USD: Inverted hammer on D1, flash PMIs eyed
EUR/USD created a bearish inverted hammer candle on Friday, establishing 1.12 as key resistance. A bearish hammer reversal would be confirmed if the spot closes Monday below 1.1102. Better-than-expected German PMI is needed to avoid a bearish close.
Week Ahead – Phase-one trade deal and UK election aftermath
The US dollar remains at a critical juncture as Fed policy will be on hold for the foreseeable future and as we start to see an economic rebound come out of Europe. The world’s largest and strongest economy is likely to start to see economic growth slow in the fourth quarter.
Gold: Flatlined after the biggest weekly gain since September
Gold is lacking a clear directional bias in Asia, having eked out its biggest weekly gain in nearly three months. The yellow metal is currently trading at $1,474 per Oz, representing little or no change on the day.
USD/JPY sidelined below 109.50 amid lack of clarity on trade deal
USD/JPY continues to trade in a flat line below mid-109s, as investors await some clarity on the US-China Phase One trade deal, especially amidst caution over the deal’s details.