USD/JPY: REBOUNDING FROM THE LOWS AT 109.000
Good afternoon Traders and welcome back to EverythingFX on this fine sunny day!
The US Dollar currently trading at 110.249 against the Japanese Yen during today's London session.
Following up from an Update from the Technical floor, our members are currently 40 PIPs up from the lows created at 109.800.
Starting on a weekly timeframe, we had a fairly bullish candlestick closure this Friday spiking down to the lows at 109.000 where we rejected aggressively. I favoured further downside but the markets are forever changing so we need to adapt with them. Looking at a daily timeframe we have seen price reject off our daily key-level of 109.700 and push past our monthly resistance of 110.000.
Dropping down to a 4-hour timeframe we can see price discretely trending to the upside creating significant higher low swings where we have currently approached a minor level if resistance at 110.200 where I will need a clean break of that before going higher. The first target for this move would be 110.850 as we have previously created a gap in the market that has not yet been filled. Upon a break of that minor level, our next resistance for the pair is at 112.000. What would invalidate this position is a break back below 109.700.
Fundamentally we have the on-going trade tensions between China and US which have not yet been resolved yet which both countries retaliating against each other so we remain vigilant to see what agreement they come to if one is made or could that just be wishful thinking. Stay tuned to our market news section and Twitter feed for regular updates.