USDJPY at Fresh Six Month Highs

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USDJPY continues higher for one more day adding 0.06% at 109.55 to fresh six month highs as traders dump safe-haven assets on China-US trade talk’s optimism, and better Manufacturing PMI’s data from China and Europe earlier today. The Japan Jibun Bank Manufacturing PMI registered at 48.9, beating expectations of  48.6 in November. Capital spending in Japan increased from previous 1.9% to 7.1% in the third quarter. The vehicle sales in Japan increased from previous -26.4% to -14.6% in November.

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US ISM manufacturing data will be released later today and will provide fresh clues on the status of the U.S. manufacturing sector.

 

USDJPY Support and Resistance Levels to Watch

On the technical side, USDJPY positive momentum is still intact as the pair makes higher highs and higher lows since the rally started in late September. On the weekly chart US Dollar bulls need to clear the daily high at 109.72 before an attempt to 200-weeks moving average at 109.80. A convincing break above that resistance zone will question the May highs at 110.95.

On the other hand, first support for USDJPY stands at 109.47 today’s low while extra bids will emerge at 108.98 the 50-weeks moving average. Bulls are in control of USDJPY, as the pair trades above all major daily moving averages while an agreement on the trade talks between the USA and China might send the pair to fresh yearly highs.

 

By Nikolas Papas, Market Strategist at Investingcube.com. Preferred broker: ATFX UK.

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