USD/JPY: upside is being capped by 21-day SMA

S&P 500 futures are reporting a 0.5 percent gain. China's Shanghai Composite has erased early losses and is now reporting gains.
The risk reset likely put a bid under the USD/JPY, however, the upside in the pair is being capped by the 21-day SMA.

Currently, the USD/JPY pair is trading at 112.62, representing a 0.23 percent gain on the day.

The gains are likely associated with the uptick in the S&P 500 futures and Asian equities. Notably, Shanghai Composite, which dropped 0.20 percent in early trade, is now up 0.70 percent on the day.

Further, reports are doing the rounds that President Trump, during an interview with Fox News, said that he is expecting a "great" trade deal with China. As a result, the risk assets may remain well bid in Europe and the US.

Technically speaking, the pair's recovery from Friday's low of 111.38 to 112.62 has trapped the bears on the wrong side of the market. However, a bullish reversal would be confirmed above 112.84 (Oct. 23 high).

Also, the 21-day SMA lined up at 112.70 is proving tough to crack as of writing, but could be breached if the European equities post stellar gains.

Technical Levels

USD/JPY

Overview:
    Last Price: 112.66
    Daily change: 29 pips
    Daily change: 0.258%
    Daily Open: 112.37
Trends:
    Daily SMA20: 112.72
    Daily SMA50: 112.17
    Daily SMA100: 111.6
    Daily SMA200: 109.87
Levels:
    Daily High: 112.58
    Daily Low: 111.78
    Weekly High: 112.9
    Weekly Low: 111.38
    Monthly High: 113.71
    Monthly Low: 110.38
    Daily Fibonacci 38.2%: 112.27
    Daily Fibonacci 61.8%: 112.08
    Daily Pivot Point S1: 111.9
    Daily Pivot Point S2: 111.44
    Daily Pivot Point S3: 111.1
    Daily Pivot Point R1: 112.71
    Daily Pivot Point R2: 113.05
    Daily Pivot Point R3: 113.51

Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.