USD/JPY Forex Technical Analysis –Weekly Tone Strengthens Over 110.761, Weakens Under 109.695
The biggest concern for traders this week will continue to be U.S.-China trade relations after a CNBC report on Friday said the two economic powerhouses had called off trade talks. If true, the Dollar/Yen could weaken. Traders will also get the opportunity to respond to the Fed minutes later this week.
A sustained move over 110.180 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive into a resistance cluster at 110.761 to 110.835. Since the main trend is down, we could see a technical bounce on the first test of this area. Taking out 110.835 could trigger an acceleration to the upside.
A sustained move under 110.180 will signal the presence of sellers. This could trigger a pullback into the main 50% level at 109.695. The USD/JPY is likely to weaken if this level fails as support.
Buy above 110.16 with 110.76 as target
Short below 110.00 with 109.65 as target
GBP/JPY technical analysis
140.00 seems immediate support to follow during the pullback, a break of which may fetch the quote back to recent lows near 139.55
Buy above 140.00 with 140.80 & 141.20 as targets
Short Below 140.00 with 139.55 & 139.00 as targets
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