FxWirePro: USD/JPY stalls downside, retakes 114 handle, renewed US-China trade optimism supports

USD/JPY chart on Trading View used for analysis

• USD/JPY erases early dip to 113.58 levels, retakes 114 handle, intraday bias higher.
   
• Comments from China's premier Li renewed hopes for improvement in US-China trade ties, supporting the pair higher. 
   
• Li said China is willing to improve free trade through discussions and find a way out of the trade war between the two economic superpowers.
   
• The pair maintains its positive tone and has shown a break above major trendline resistance.
   
• We see some overbought pressures on momentum indicators, but with no major signs of reversal we expect the bullish momentum to continue.
   
• A decisive break above 114 is likely to see test of 114.55 (Oct 4 high) ahead of 114.74 (Nov 2017 high).
   
• On the flipside, close below 5-DMA could see weakness till 21-EMA at 113.17.

Support levels - 113.85 (5-DMA), 113.17 (21-EMA), 113

Resistance levels - 114.55 (Oct 4 high), 114.74 (Nov 2017 high), 115

Recommendation: Watch out for decisive breakout at 114 to go long, target 114.55/ 114.75/ 115

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