The US dollar has moved above the 106.40 level against the US dollar, following positive news this morning over Sino-US trade developments. The breakout above the 106.40 level is technically positive and indicates an upcoming technical test of the 107.00 level. Once above the 107.00 level, increased USDJPY buying towards the 108.00 level remains the most likely scenario.
The USDJPY pair is bullish while trading above the 106.40 level, key resistance is found at the 107.00 and 108.00 levels.
The USDJPY pair is only bearish while trading below the 106.40 level, key technical support is found at the 106.00 and 105.40 levels.
