The USD/JPY has extended its weekly advance to 107.58, highest since August 1 as the demand for safe-haven assets remained weak, leading US Treasury yields higher, amid hopes the US and China will soon resume trade talks. On this optimism, US indices bounced from their intraday lows, trimming most of the losses, putting further pressure on the anti-risk Yen. Today, the bias remains bullish as long as the risk-on sentiment continues to dominate the marketplace. Any negative tweet or headline regarding interest rates or trade war could quickly change the market sentiment.
The Dollar bulls broke above 107.50 yesterday as the bulls are eyeing the next level of resistance 107.75. Price has formed a clear rising wedge pattern where any clear break to either side will likely be followed by a strong momentum. Nevertheless, the bias remains with the bulls until proven otherwise.
Support: 107.20 / 107
Resistance: 107.75 / 108