Global macro overview for 13/02/2017:
The dollar was trading higher against the yen on Monday morning amid relief that a weekend summit meeting between U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe went better than expected. In the meeting with Abe, Trump avoided repeating accusations that Tokyo uses monetary policy to devalue its currency to the disadvantage of the US and takes advantage of US security aid. They both also agreed to hold an economic dialogue after Trump canceled the US from the Trans-Pacific Partnership agreement.
Let's now take a look at the USD/JPY technical picture at the 4H time frame. The bulls have managed to break out above the golden trendline resistance, but the rally was capped just below 38%Fibo at the level of 114.28. The market conditions seem to be overbought at this time frame, but the bias is still to the upside. The next resistance is seen at the level of 114.26 and 115.60.
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