USDJPY bulls target 111.60 level

The US dollar has made a strong recovery higher against the Japanese yen currency, following bullish reports coming from Sino-US trade negotiations. USDJPY buyers now need to move price above the 111.60 level to encourage fresh technical buying in the pair. A bullish pattern could start to emerge on the four-hour time frame now that the head and shoulders pattern has reached its bearish target.

• The USDJPY pair is only bearish while trading below the 111.60, key intraday support is found at the 111.35 and 111.00 levels.

• If the USDJPY pair trades above the 111.60 level, key intraday resistance remains at the 111.88 and 112.40 levels.