FxWirePro: USD/JPY consolidates gains above 113 handle, positive tone around Asian equities to extend support

USD/JPY chart on Trading View used for analysis

• USD/JPY is trading in a narrow range, consolidating gains above 113 handle.
   
• The major has closed above 21-EMA raising scope for further upside.
   
• Technical studies support upside and we see scope for test of trendline resistance at 114.15.
   
• A positive tone seen around the Asian equities today is likely to keep the pair supported.
   
• Markets cheer progress from Italy on govt signals willingness to negotiate with Brussels and curb the deficit. 
   
• Investors’ focus will be mainly on Xi-Trump talks at the G-20 leaders’ meeting later this week as trade tensions continue.

Support levels - 113.015 (21-EMA), 112.30 (Nov 20th low)

Resistance levels - 114, 114.15 (Upper BB), 114.55 (Oct 4 high)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.