…and play golf . The technical bias a little more bearish below the 100 and 200 hour MAs
Pres. Trump and Japan PM Abe are meeting at Trump’s Mar-a-Lago in Florida.
The key topics will be on trade and the upcoming US/No. Korea talks. Trump said that US has started direct talks with No. Korea. The US is schedule to impose tariffs on Japans aluminum and steel imports. The US did not exempt Japan from the tariffs (at least so far). Trump also said last week that he wanted Kudlow to look at the TPP agreement, but also added it would only be with new terms for the US.
The USDJPY traded up and down in trading yesterday. There was only a 33 pip trading range for the day.
Technically most of the trading took place below the 100 and 200 hour MAs. The 100 hour MA comes in at 107.18 and the 200 hour MA comes in at 107.125. The one move above the 100 hour MA (blue line in the chart above, stalled at the underside of a broken trend line. On the run back lower in the US afternoon, the price stalled at another underside of a broken trend line.
Into the new trading day, the MAs above will continue to be an area to define bullish or bearish bias (yellow area in the chart above) . Stay below is more bearish. Move above is more bullish once again.
ON the downside, the swing lows over the last 9 trading days will be eyed as targets. They include:
The 106.61 has been the low extreme in the up and down market over the last 9 days.
Overall, the buyers had there shot to take the pair higher on Friday of last week when the price moved above the 107.45-49 area. That failed on Friday and again on Monday after the weekend Syrian attacks led to a higher opening on Monday for the pair. The move below the MAs turned the buyers back to sellers. Can they keep that bias alive in the new day? We will see.
The Japan trade data and any headlines from Trump/Abe could swing the price in trading today.