USD/JPY technical analysis: Trims gains, but bias remains bullish


  • 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. 

Daily chart

Trend: Bullish

Technical levels

USD/JPY

Overview
Today last price 107.95
Today Daily Change -0.01
Today Daily Change % -0.01
Today daily open 107.97
 
Trends
Daily SMA20 107.66
Daily SMA50 106.92
Daily SMA100 107.6
Daily SMA200 109.07
 
Levels
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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