FxWirePro: USD/JPY resumes upside on US-China trade optimism and risk-on, eyes 112 mark

USD/JPY chart - Trading View 

• USD/JPY has resumed upside after a brief pause on Tuesday's trade.
   
• Reports that the US and China are near to a trade deal favored risk-on amid markets supporting the pair higher.
   
• Also, BOJ Dep Gov Wakatabe's comments that inflation remains subdued globally may have added to the bearish pressures around the JPY. 
   
• The pair is hovering around 200-DMA at 111.47 after hitting 3-week highs at 111.53. Rise in the 10-year treasury yield to keep support.
   
• Developments surrounding the US-China trade negotiations will impact price. On the data front, the US ADP employment change, ISM non-manufacturing PMI in focus.
   
• Technical analysis supports upside in the pair. Breakout above 200-DMA will confirm bullishness.

Support levels - 110.98 (110-EMA), 111.12 (5-DMA), 110.86 (55-EMA)

Resistance levels - 111.47 (200-DMA), 112, 112.21 (76.4% Fib)

Recommendation: Stay long on break above 200-DMA, SL: 110.95, TP: 112/ 112.20

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