USD/JPY back to session highs of 107.44
US equity futures are still swimming in the doldrums but USD/JPY is coming back up to reach the highs posted before the Trump announcement on proposed additional tariffs against China.
On the 5-minute chart, you can see a sort of double bottom formation formed at the psychological level of 107.00 and bids there kept the pair afloat before sending it higher to session highs once again.
No doubt the dollar is holding its own across the major bloc, but the turnaround in sentiment here is definitely something else. The Nikkei is back near session highs as well, trading 0.27% higher so that could be a contributing factor to the reversal in the pair too.
As mentioned earlier, markets are quick to forget so if this is any indicator it is that buyers are winning the battle in the near-term against the sellers.
Looking at the bigger picture, the recent move yesterday and today looks to put an end to the lower highs, lower lows pattern in the pair since the start of the year. And a break of said pattern is a key indication that we may have just found a bottom in the pair - at least for now.
The next key level to the upside to watch out for is the 61.8 retracement level @ 107.87.
