Washington supports the current conversations

US President Trump emphasised that the negotiations are on track and that “a lot of good things are happening now. China desperately wants an agreement.”

The talks between officials of both countries will soon continue. With the aim of reaching the final agreement that Donald Trump and his Chinese counterpart, Xi Jinping, will sign during the summit of the Asia-Pacific Economic Cooperation Forum (APEC). Taking place in Santiago De Chile between November 16th and 17th.

USD/JPY is still bullish. The pair keeps its positive tone across the board, in the hopes of a possible deal between Washington and Peking. According to the H4 chart, it managed to break above a resistance zone of 108.71, opening the doors to potentially reaching the 109.22 level, where a supply region is located. If it gives up, a leg higher is expected to take place, at least towards the 109.90 neighbourhood.

Overall, USD/JPY is trading within a bullish channel drawn from the lows of August, favouring the bulls’ dominance. Also, the 200 SMA is helping to provide dynamic support, as it did in the first half of October. However, if a breakout below 108.27 happens, then a bearish continuation could go towards the 107.59 area, where the lower band of the channel lies. The RSI indicator remains in the positive territory, while the Momentum oscillator is turning flat, favouring further consolidation over the coming days.