Monday, September 23, 2019

USD/JPY

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Fundamental Highlights

The Dollar recovered against the Yen over news that in the assurance from Chinese officials that trade talks will continue in October, despite the abrupt departure of the negotiation team from the US on Friday. The news pushed equities higher, which is good news for the Dollar; however, US yields are still weak relatively as markets are pricing 26bps of easing by year-end, which is bad news for the greenback. If equities remain strong and US yields make a comeback in today’s session, it will push the pair higher possibly retesting the 108 level.

Technical Analysis

The Dollar bulls are attempting to regain possession as their first resistance level in sight is 107.80. If broken then a retest of the 50-day moving average and the 108.10 level will be a likely scenario. The bulls will likely stay in control in the near-term as long as price remains above 107.50. If the bears were able to break below that level, then further losses will be on the cards for this pair.

Support: 107.50 / 107.20
Resistance: 107.80 / 108.10

Chart (H4)
USDJPY