- Trump administration is reportedly planning to publish a list of 'new' tariffs that are to be imposed on $200 billion worth of Chinese goods.
- We have NATO coming up this week and trade war angst is bound to take a front seat again.
- Meanwhile, there has otherwise been an upbeat tone on the street today, with equities firmly bid that lead to USD/JPY breaking out and making the best finish in NY since early January.
USD/JPY is losing the 111 handle in early Asia on the back of trade war noise whereby the Trump administration is reportedly planning to publish a list of 'new' tariffs that are to be imposed on $200 billion worth of Chinese goods. USD/JPY has dropped from 111.27 and made a fresh low of 110.82, currently trading at 110.94.
Meanwhile, there has otherwise been an upbeat tone on the street today, with equities firmly bid that lead to USD/JPY breaking out and making the best finish in NY since early January. However, fundamentally, the pair can only survive around the cloud base and well-defined downtrend from 2015 at 111.39/55 so long as a firmer Treasury-JGB yield spread can and how long the respite in risk-off sentiment lasts.
We have NATO coming up this week
We have NATO coming up this week and trade war angst is bound to take a front seat again. However, there could be a significant breakout on central bank divergences in the pair so long as the bulls can close through the said levels, or indeed, at least for the short term, hold above the daily Tenkan at 110.66. Thursday's CPI is a key data event this week that may or may not fit the Fed's bill while otherwise, the Goldilocks jobs report did just that and keeps the focus on the upside for the time being.
USD/JPY levels
While USD/JPY has been approaching the 111.39 recent high and the 2015-2018 downtrend a deeper correction down to the 55-day ma at 109.96 and the 8th June low at 109.20 could prove problematic to trapped bulls. A break there opens up risk right back to the 108.21 29th May low and the mid- February high at 107.91. Otherwise, a breakout to the upside can target and the long-term downtrend line and weekly Cloud top at 111.47/70.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.