FxWirePro: USD/JPY struggles at 109 handle, risk-on amid US-China trade optimism likely to support upside

USD/JPY chart on Trading View used for analysis

• USD/JPY consolidates around 109 handle, holds in the green for the 4th straight session.
   
• USD likely to remain underpinned on risk-on action in the Asian equities amid US-China trade optimism and oil-price rally.
   
• Intraday bias is higher. Technical studies on the daily charts are turning slightly bullish.
   
• Stochs and RSI have rolled over from oversold levels and are biased higher.
   
• The pair has broken above 5-DMA and has ignored a Doji formation in the previous session's candle.
   
• Next immediate resistance lies at 1H 200 SMA at 109.24. Break above could see further upside.
   
• On the flipside, break below immediate support at 5-DMA (108.50) will see resumption of weakness. 

Support levels - 108.50 (5-DMA), 108.41 (61.8% Fib), 108

Resistance levels - 109.24 (1H 200 SMA), 109.59 (50% Fib), 110

Recommendation: Good to go long on break above 1H 200 SMA, SL: 108.45, TP: 109.45/ 109.60/ 110

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