USD/JPY Technical Analysis: Talk of US-China trade deal triggers falling wedge breakout

Bloomberg is reporting that President Trump has asked the cabinet to draft a possible trade deal with China. The news comes after Trump and Xi's telephonic conversation ahead of the G-20 Summit.
The news is helping the CNY, risk currencies and most majors score gains against the US dollar. The anti-risk Japanese yen, however, is on the defensive against the greenback. The price action in the FX markets is indicative of a solid risk-on action during the day ahead.
The USD/JPY witnessed a falling wedge breakout a few minutes before press time and is currently trading at 113.00. The pattern indicates a resumption of the rally from the Oct. 26 low of 111.38 and could yield re-test of the recent high of $113.38.
The RSI on the hourly chart has also turned bullish above 50.00.

Omkar Godbole FXStreet Contributor

Hourly Chart

Trend: Bullish

USD/JPY

Overview:
    Last Price: 112.73
    Daily change: 2.0 pips
    Daily change: 0.0177%
    Daily Open: 112.71
Trends:
    Daily SMA20: 112.55
    Daily SMA50: 112.3
    Daily SMA100: 111.67
    Daily SMA200: 109.91
Levels:
    Daily High: 113.06
    Daily Low: 112.6
    Weekly High: 112.9
    Weekly Low: 111.38
    Monthly High: 114.56
    Monthly Low: 111.38
    Daily Fibonacci 38.2%: 112.77
    Daily Fibonacci 61.8%: 112.88
    Daily Pivot Point S1: 112.52
    Daily Pivot Point S2: 112.32
    Daily Pivot Point S3: 112.05
    Daily Pivot Point R1: 112.98
    Daily Pivot Point R2: 113.26
    Daily Pivot Point R3: 113.45

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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