Tuesday, October 1, 2019

USD/JPY

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Fundamental Highlights

The Dollar surged as the DXY hits fresh yearly highs while US Equities and Treasuries recovered further. The stock market pumped up on some positive trade talks chatter coupled with Fed rate cut extractions. Risk-on remains the dominant sentiment in the market, as traders are dropping safe-haven assets such as gold and the Yen. Also keeping in mind, that the Chinese market will be closed from today until seventh of October, courtesy of China’s National Day holidays. The Dollar will likely continue its strength in today’s session if Equities and US Treasuries hold their gains.

Technical Analysis

The Dollar-Yen bounced from the 50-day moving average, previous resistance became new support, as the bulls are currently targeting the September 18 high, 108.50. However, price first needs to break past another resistance level, 108.25, before confirming its upward path. The bears, on the other hand, need to close below 108 if they want to regain possession.

Support: 108 / 107.80
Resistance: 108.25 / 108.50

Chart (H4)
USDJPY