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

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Bullish case underpinned by weekend news

The EUR/USD pair has rallied Friday to close with gains for a third consecutive week at 1.1169. There was no particular catalyst for EUR gains. ECB scheduled to meet this week, although no fireworks expected this time.

EUR/USD News

GBP/USD: Uncertainty or relief? Action granted anyway

Hopes that the UK will avoid a hard-Brexit kept the Pound rallying against all of its major rivals by the end of last week, with GBP/USD finishing it a handful of pips below the critical 1.3000 level.

GBP/USD News

USD/JPY: Corrective slide to continue on sentiment

The USD/JPY pair closed the week at around 108.40, down Friday for a third consecutive day as the American currency remained under selling pressure. USD/JPY at risk of falling further only if it breaks below 108.00.

USD/JPY News

Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more

Forex MAJORS

Cryptocurrencies

Signatures