• USD/JPY advanced on Monday as U.S. dollar surged following a breakthrough in trade negotiations between the United States and China
• US -China reached a deal to significantly reduce tariffs, marking a key de-escalation in the ongoing trade conflict.
• Under the new agreement, the U.S. will cut the additional tariffs imposed on Chinese imports from 145% to 30%, while China will reduce its tariffs on U.S. goods from 125% to 10%.
• This agreement, which came after intense talks over the weekend, exceeded market expectations and alleviated fears of further trade disruptions.
• Immediate resistance is located at 148.48 (38.2%fib), any close above will push the pair towards 145.20(23.6%fib).
• Support is seen at 146.43(50%fib) and break below could take the pair towards 144.39(61.8%fib).
Recommendation: Good to buy around 148.00, with stop loss of 147.50 and target price of 150.00
