The USDJPY pair was trading somewhat higher during the London session on Monday and was hovering around 109.50. The pair opened with a bullish gap at 109.90 but failed to hold daily gains and dipped afterward.
Bulls were buying in on the indications that the Trump-Kim summit would take place after all. This has improved sentiment on the financial markets and stocks rose, along with other riskier assets, while gold was sold-off.
As the US celebrates the Memorial Day holidays today, the markets are closed and therefore there are no data on the agenda today. Therefore, volatility should be lower throughout the whole day.
The greenback could attack the strong resistance of 110 later in the week, where the 200 day moving average is also located.
The support is seen around 109.30 and if not defended, the pair might decline to the 109 level. More volatility should come later in the week as many important macro news are due. In all cases we strongly recommend to have rigorous money and risk management.
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