June 27, 2019, | SQUARED DIRECT - The anti-risk Japanese Yen is losing ground, pushing the Dollar/Yen higher after reports that the US and China have agreed to another truce in their trade war.
The world's two biggest economies have agreed to a tentative truce ahead of the G-20 meeting, paving way for a fresh round of negotiations. Neither the White House nor the Office of the US Trade Representative has commented on the reports. However, equities and the greenback have picked up a bid in response to the trade news.
Looking forward, market participants may avoid being overoptimistic this time as the previous talks had collapsed suddenly and shocked the market.
USDJPY technical analysis
The Dollar/Yen broke above multiple resistance levels and the 50-day moving average during yesterday’s session. Currently, price is sitting just below 108.20, a break above it might extend the gains towards 108.70-80s and retest the 200-day moving average. However, a failure to break to the upside, the bears will likely take over and push price lower 107.85 and possibly 107.50.
Support: 107.85 / 107.50
Resistance: 108.20 / 108.70-80
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