Tuesday, May 7, 2019

USD/JPY - 07 May 2019

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Fundamental Highlights

The Dollar/Yen recovered a bit on Monday but was still down on the day after the pair gapped down at the Asian market open. The anti-risk Yen was the better bid during yesterday’s session as US Equities fell after Trump’s tariffs tweet. Looking forward, the Chinese Vice Premier will visit the US on May 9-10 for the 11th round of trade talks. This could boost the Dollar a bit but ultimately the JPY will likely be favored during the day ahead as nothing is still certain regarding the trade deal.

Technical Analysis

The Dollar/Yen gapped down at yesterday’s Asian open but price found support at 110.30 (S1) and bounced towards 110.85 (R1). The bulls attempted to break above this level to reach 111.10 (R2) and close the gap, but the bears were stronger and kept price under their control. Today, the sellers will try to retest the recent low 110.30 and the buyers will be looking to close the gap by taking price higher towards 111.10 (R1).

Support: 110.30 / 110
Resistance: 110.85 / 111.10

Chart (H4)
USDJPY

 
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