- A flag breakout seen on USD/JPY's daily chart suggests scope for a rally to 110.80.
- The bullish setup would fail if the US-China trade talks collapse.
USD/JPY is currently trading unchanged on the day around 107.95, having hit a high of 108.31 at 00:55 GMT.
Despite the pullback, the outlook remains bullish, as the bullish breakout confirmed on Thursday is still valid.
The pair closed at 107.95 yesterday, confirming a flag breakout on the daily line chart. The pattern indicates the rally from recent lows near 105.00 has resumed and has created room for a rise to 110.80 (target as per the measured move method).
That target could be reached in the next week or two if the US and China announce a partial trade deal.
President Trump is scheduled to meet China's Vice Premier Liu He at 18:45 GMT on Friday.
The flag breakout will likely fail if the trade negotiations end on a sour note, paving the way for further escalation of a trade war.
|Today last price||107.95|
|Today Daily Change||-0.01|
|Today Daily Change %||-0.01|
|Today daily open||107.97|
|Previous Daily High||108.02|
|Previous Daily Low||107.03|
|Previous Weekly High||108.48|
|Previous Weekly Low||106.48|
|Previous Monthly High||108.48|
|Previous Monthly Low||105.74|
|Daily Fibonacci 38.2%||107.64|
|Daily Fibonacci 61.8%||107.41|
|Daily Pivot Point S1||107.32|
|Daily Pivot Point S2||106.68|
|Daily Pivot Point S3||106.33|
|Daily Pivot Point R1||108.31|
|Daily Pivot Point R2||108.66|
|Daily Pivot Point R3||109.3|
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