USD/JPY hits fresh weekly lows on US/China trade headlines
|- Yen consolidates gains on a quiet session and lower US yields.
- US Dollar loses strength after DXY reached fresh monthly highs but failed to run higher.
The USD/JPY printed a fresh daily low during the American session amid a wave of risk aversion on US/China trade headlines. The pair dropped to 108.64, hitting a fresh one-week low and then bounced modestly to the upside.
Bearish pressure prevails
As of writing trades at 108.75/80, so far it remains above the 108.70/75 support area but still faces downside pressure. A break lower would likely accelerate the decline toward 108.45; below the next support stands at 108.20.
Price is about to close around daily lows after reports suggested that US-China trade talks are being affected by farm purchases. Those headlines boosted the demand for safe-haven assets further.
Earlier today, US inflation data and Fed’s Chair Powell comments at Congress were ignored by market participants. During the Asian session, Japanese growth data is due.
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