Wednesday, October 23, 2019

USD/JPY

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Fundamental Highlights

The Dollar-Yen remained afloat throughout most of the day finding support in the positive performance of European and Asian equities. However, by the end of the day, US Treasury yields along with US equities closed in the red after the UK Parliament voted against PM Johnson’s motion to accelerate the process, as the headline made market participants to flee for safe-haven assets. Today, the bearish sentiment will likely lead the way if the market doesn’t get any positive headline regarding Brexit or the US-China trade war.

Technical Analysis

The Dollar-Yen broke below the 50-day moving average, as the bullish momentum is slowing fading away. A break below 108.30 will extend the losses towards 108.10 and possibly even further. The bulls need to get back above 108.50 to regain possession and retest the recent highs.

Support: 108.30 / 108.10
Resistance: 108.50 / 108.70

Chart (H4)
USDJPY