USD/JPY Technical Analysis: Off highs despite China news, 100-week MA is key hurdle

USD/JPY has backed off from session highs despite trade optimism
China will be reducing tariffs on some US goods from Jan. 1.
Pair's repeated failure to beat key MA resistance has boosted pullback risks.

Omkar Godbole FXStreet Contributor

USD/JPY is currently trading at 109.42, having hit a high of 109.54 two hours ago.

The pair has backed off from session highs despite the news that China will be lowering import tariffs on 850 US items starting from Jan. 1, 2020.

The list will also include frozen pork and frozen avocado, the finance ministry said while adding further that tariffs will be lowered on some technology products from July 1, 2020.

So far, the news has failed to have a notable impact on the risk assets. For instance, the futures on the S&P 500 are currently up just 0.08%. As a result, anti-risk JPY is showing resilience.

Focus on 100-week MA

The pair has failed to close above the 100-week average for three straight weeks despite the US-China trade truce and record highs in the US equities.

So, it seems safe to say that the pair's rally from the August low of 104.45 has run out of steam. The repeated failure to beat the average resistance has shifted risk in favor of a pullback to support at 107.89 (Nov. 1 low).

A weekly close above the key average at 109.59 is needed to revive the bullish view.

Weekly chart

Trend: Bearish

Technical levels

USD/JPY

Overview
Today last price	109.42
Today Daily Change	-0.06
Today Daily Change %	-0.05
Today daily open	109.48

Trends
Daily SMA20	109.11
Daily SMA50	108.87
Daily SMA100	107.91
Daily SMA200	108.75

Levels
Previous Daily High	109.53
Previous Daily Low	109.26
Previous Weekly High	109.69
Previous Weekly Low	109.18
Previous Monthly High	109.67
Previous Monthly Low	107.89
Daily Fibonacci 38.2%	109.42
Daily Fibonacci 61.8%	109.36
Daily Pivot Point S1	109.31
Daily Pivot Point S2	109.15
Daily Pivot Point S3	109.04
Daily Pivot Point R1	109.58
Daily Pivot Point R2	109.69
Daily Pivot Point R3	109.85

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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