USD/JPY keeps range around 200-DMA amid trade woes, ahead of Trump
|- USD/JPY undermined by trade uncertainty, USD weakness, Hong Kong chaos.
- Risks remain skewed to the downside while below 5-DMA at 109.16.
- Markets await Trump’s speech and Fedspeak for fresh trading impetus.
With the sentiment still undermined by US President Trump’s last week's comments on the US-China trade deal, the USD/JPY pair trades modestly flat just ahead of the 109-handle stepping into the Asian opening.
Risk trends to play a pivotal role amid trade deal doubts
The spot tracks the Wall Street action overnight and treads cautiously around the 200-DMA at 109.03 amid a quiet Asian schedule while the market mood will continue to get influenced by the lack of certainty on the US-China trade deal and the Hong Kong chaos.
With little progress on the trade front, markets remain weighed down by the recent remarks from the White House Adviser Navarro, as he quoted the Trump, as saying that he didn’t agree to anything related to tariffs. Meanwhile, the US Administration official condemned Monday’s Hong Kong violence after two protesters were shot by police amid ongoing demonstrations.
Further, the bears continue to limit the upside attempts, with the US dollar weakness overnight likely to add to the downbeat tone around the spot. The USD index consolidates the correction from three-week of 98.40 near 98.20 at Tokyo open, down -0.15% so far.
Attention now turns towards Trump’s speech and speeches by the Fed officials scheduled later on Friday, in absence of relevant macro data out of the US. The US President is due to speak at the Economic Club of New York around 1700 GMT, with the focus likely to be on his any comments on the US-China trade issue.
USD/JPY Technical levels to consider
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