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2 Nov 2018
USD/JPY Technical Analysis: Talk of US-China trade deal triggers falling wedge breakout
- Bloomberg is reporting that President Trump has asked the cabinet to draft a possible trade deal with China. The news comes after Trump and Xi's telephonic conversation ahead of the G-20 Summit.
- The news is helping the CNY, risk currencies and most majors score gains against the US dollar. The anti-risk Japanese yen, however, is on the defensive against the greenback. The price action in the FX markets is indicative of a solid risk-on action during the day ahead.
- The USD/JPY witnessed a falling wedge breakout a few minutes before press time and is currently trading at 113.00. The pattern indicates a resumption of the rally from the Oct. 26 low of 111.38 and could yield re-test of the recent high of $113.38.
- The RSI on the hourly chart has also turned bullish above 50.00.
Hourly Chart
Trend: Bullish
USD/JPY
Overview:
Last Price: 112.73
Daily change: 2.0 pips
Daily change: 0.0177%
Daily Open: 112.71
Trends:
Daily SMA20: 112.55
Daily SMA50: 112.3
Daily SMA100: 111.67
Daily SMA200: 109.91
Levels:
Daily High: 113.06
Daily Low: 112.6
Weekly High: 112.9
Weekly Low: 111.38
Monthly High: 114.56
Monthly Low: 111.38
Daily Fibonacci 38.2%: 112.77
Daily Fibonacci 61.8%: 112.88
Daily Pivot Point S1: 112.52
Daily Pivot Point S2: 112.32
Daily Pivot Point S3: 112.05
Daily Pivot Point R1: 112.98
Daily Pivot Point R2: 113.26
Daily Pivot Point R3: 113.45