USD/JPY advances to mid-110s on renewed trade optimism

US Dollar Index rises to 97.20 area ahead of data.
Reports of the U.S. and China reaching consensus on key issues boost the sentiment.
US 10-year T-bond yield moves into the positive territory.

Eren Sengezer FXStreet

after losing 50 pips on Thursday, the USD/JPY extended its slide during the European trading hours and touched a 4-day low of 110.25 before gaining traction ahead of the Wall Street opening bell. As of writing, the pair was unchanged on the day at 110.52.

Chinese news agency Xinhua today reported that Chinese and U.S. negotiators have reached consensus on some key issues during trade talks. Similarly, White House press secretary Sanders told reporters that the U.S. and China made progress in talks and added that discussion would continue next week in Washington while explaining that the U.S. was focused on issues regarding technology transfer and currency manipulation.

Boosted by these headlines, the S&P 500 Futures turned positive on the day to suggest that Wall Street is likely to open higher. Additionally, the 10-year T-bond yield retraced its daily fall to support the pair's recent rebound.

Later in the session, import/export price index, industrial production, and the UoM Consumer Sentiment Survey from the U.S. will be looked upon for fresh impetus. Ahead of these data, the US Dollar Index is up 0.28% on the day at 97.30.

Key technical levels

USD/JPY

Overview:
    Today Last Price: 110.52
    Today Daily change: 0.00 pips
    Today Daily change %: 0.00%
    Today Daily Open: 110.52
Trends:
    Daily SMA20: 109.78
    Daily SMA50: 110.21
    Daily SMA100: 111.65
    Daily SMA200: 111.3
Levels:
    Previous Daily High: 111.13
    Previous Daily Low: 110.45
    Previous Weekly High: 110.16
    Previous Weekly Low: 109.43
    Previous Monthly High: 110
    Previous Monthly Low: 104.75
    Daily Fibonacci 38.2%: 110.71
    Daily Fibonacci 61.8%: 110.87
    Daily Pivot Point S1: 110.27
    Daily Pivot Point S2: 110.02
    Daily Pivot Point S3: 109.6
    Daily Pivot Point R1: 110.95
    Daily Pivot Point R2: 111.38
    Daily Pivot Point R3: 111.62

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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