USD/JPY bounces-off a dip to 100-DMA, eyes on Trump-Abe Summit

The USD/JPY pair reversed a spike to daily highs at 112.34, although managed to hold above 100-DMA support located at 112.03, as the yen lost footing amid renewed worries over the outcome of Japan-US Summit scheduled tomorrow in Washington.

The US President Trump and Japan PM Abe is likely to meet tomorrow to discuss trade, defense and jobs, while markets are getting nervous that a trade war could be intensified if Trump maintains his protectionist policies, which may pose big downside risks to the Japanese businesses and foreign trade.

Meanwhile, broad based US dollar strength also collaborates to the latest leg higher in USD/JPY.  The spot was last seen exchanging hands at 112.19, up +0211% on the day, and looks to regain 112.50 barrier.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 112.62 (10-DMA). A break above the last, the major could test 112.97 (daily R2) and 113.41 (20-DMA) beyond the last. While to the downside, the immediate support is seen at 111.75 (daily low) next at 111.51 (daily S1) and below that at 111.09 (daily S2).