The Dollar/Yen broke out from the sideways channel, signaling a potential continuation of the rally from the recent lows 110.00, after the Financial Times reported that the top US and Chinese officials have resolved most of the issues blocking the long-awaited trade deal. Also, BOJ Deputy Governor Wakatabe's comments that inflation remains subdued globally may have added to the bearish pressures on the Yen. Looking forward, any positive development concerning the trade deal could bring back the risk-on sentiment and yield further gains on this pair.
The USD/JPY is attempting to break above 111.50 (R1) resistance area, as the bullish market sentiment continues, looking to retest 111.70 (R2) and possibly 111.9 (R3). Failure to breakout, price could pull back towards 111.25 (S1).
Support: 111.25 / 111.1
Resistance: 111.5 / 111.7 / 111.9