USD/JPY bulls have been capped in Tokyo, unable to get and hold above the 109.80 resistance. Currently, USD/JPY is trading at 109.69, up 0.03% on the day, having posted a daily high at 109.81 and low at 109.64.
Overnight, USD/JPY was better bid where, firstly, EUR/JPY bulls carried the pair higher after the ECB noise supported the euro and that aided the continuation of the USD/JPY from 109.42 lows.
With US yields bouncing to the 3% mark, the general dollar rebound sent the pair to a high of 109.69. Observers will now keep an eye on trade war headlines, (currently softened by Trump's about-face ZTE negotiation with China) and Japanese GDP/US retail sales tomorrow.
The daily ascendant trend line coming from early April is now acting as support at 109.00, although the key level continues to be the 108.70/80 price zone, with a break below this last opening doors for a steeper decline.
Source : fxstreets