USD/JPY battle around 110 continues as trade talks loom

Technical Analysis

Author: Justin Low | usdjpy

The story continues for USD/JPY and the 110 handle this week

USD/JPY H1 11-02-19
ForexLive
Buyers successfully broke back above the 100-hour MA (red line) earlier after numerous attempts over the past three trading days but gains remain capped as the 110.00 handle remains the important psychological barrier for USD/JPY at the moment.

As it stands, the focus for the pair remains on US-China trade talks with lower level discussions resuming today before Lighthizer and Mnuchin will be meeting with Liu He later in the week.

For the pair to break above 110.00, I reckon it would require some form of positive reinforcement of a deal before the 1 March deadline. Otherwise, it's hard to see risk assets and USD/JPY rally in a sustainable manner over the next few weeks.

But until trade talks are sorted out, expect plenty of push and pull around the 110.00 handle for USD/JPY to come this week as well - much like what we saw last week.

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