USD/JPY hits 2019 high above 111.00 on Trump's flexibility on tariff deadline
|- Trump's flexibility on tariff deadline is adding to the bullish tone around USD/JPY
- The pair may find acceptance above 111.00 if German GDP prints above estimates and equities put on a good show, courtesy of easing US-China trade tensions.
The already buoyant USD/JPY has received a further boost from the news that President Trump is considering extending the tariff deadline by 90 days.
As of writing, the USD/JPY is trading at 111.00, having clocked a 2019 high of 111.13 a few minutes before press time.
Back in early December. China and the US agreed to put tariffs on hold for a 90-day period and give negotiations a change. So far, however, a breakthrough deal has remained elusive. Both sides remain stuck on key issues like intellectual property theft.
That said, Trump's willingness to let the March 1 deadline to raise tariffs on Chinese products pass without penalty seems to have put a bid under the risk assets.
As of writing, the S&P 500 futures are reporting a 0.11 percent gain. As a result, the dollar continues to gain ground against the Japanese yen, amid losses against other majors.
Looking ahead, USD/JPY could find acceptance above 111.00, if equities extend gains on easing US-China trade tensions and German Q4 GDP alleviates recession fears to some extent.
Technical Levels
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