The Dollar/Yen is inching higher early Monday on hopes that the United States and China may soon end their trade war after comments from two high-ranking U.S. officials late last week and a Chinese official over the weekend indicated the two economic powerhouses were moving closer to a deal. Given the lack of concrete detail, however, investors still remain mostly cautious.
At 05:10 GMT, the USD/JPY is trading 108.815, up 0.030 or +0.03%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 109.488 will signal a resumption of the uptrend. The main trend will change to down on a move through the last main bottom at 107.891.
The minor trend is also up. A move through 108.863 will make 108.244 a new minor bottom.
The first minor range is 107.891 to 109.488. Its 50% level or pivot at 108.690 is acting like support.
The second minor range is 109.488 to 108.244. Its 50% level or pivot at 108.866 has provided resistance the last three sessions.
The short-term range is 106.485 to 109.488. Its retracement zone at 107.987 to 107.632 is potential support.
The main range is 104.463 to 109.488. Its retracement zone 106.976 to 106.383 is major support.
Daily Technical Forecast
Based on the early price action and the current price at 108.815, the direction of the USD/JPY is likely to be determined by trader reaction to the minor pivot at 108.866.
A sustained move over 108.866 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at 109.051. This is a potential trigger point for an acceleration into the next downtrending Gann angle at 109.269. This is the last potential resistance angle before the 109.488 main top.
A sustained move under 108.866 will signal the presence of sellers. The first downside target is the 50% level at 108.690. This is a potential trigger point for an acceleration to the downside with the first target angle coming in at 108.485.
If 108.485 fails then look for the selling to possibly extend into last week’s low at 108.244, followed by an uptrending Gann angle at 108.213.
This article was originally posted on FX Empire
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