USD/JPY stays in the positive territory above 111

• Wall Street starts the week higher.
• US Dollar Index records modest losses, stays above 95.
• Eco Watchers survey points to improved sentiment in Japan.

After starting the week a little below the 111 mark, the USD/JPY pair moved sideways for the majority of the day before gaining traction in the early NA session. The pair, which advanced to a fresh session high of 111.20, was last seen trading a couple of pips below that level, adding 0.12% on the day.

Although a sharp upsurge witnessed in the GBP/USD pair forced the dollar to weaken against its other peers as well, the USD/JPY pair seems to be taking advantage of the improved market sentiment on Monday. At the moment, the US Dollar Index is down 0.27% on the day at 95.10.

Major equity indexes in the U.S. recorded weekly losses last week and started the day on a positive note amid some positive developments regarding the U.S. - E.U. trade talks. In a published statement, the Office of the U.S. Trade Representative said that the meeting between Trade Representative Robert Lighthizer and his European counterpart, Cecilia Malmström, was constructive and they were planning to finalize certain areas of negotiations in November. As of writing, the S&P 500 and the Dow Jones Industrial Average were up 0.1% and 0.3% respectively.

Earlier in the day, the data released from Japan showed that both Eco Watchers ' both Current Situation and Outlook indexes improved from July to August.

Technical outlook

The immediate resistance for the pair aligns at 111.20 (daily high/50-DMA) ahead of 111.75 (Sep. 5 high) and 112.15 (Aug. 1 high). On the downside, supports could be seen at 110.70 (100-DMA), 110 (psychological level) and 109.40 (Jun. 26 low).