USD/JPY climbs to 4-day tops above 108.30, retreats on Trump comments

  • The 10-year US Treasury bond yield gains nearly 2% on Tuesday.
  • US Dollar Index extends the rebound in the NA session.
  • US Pres. Trump says they have a long way to conclude trade talks with China.

The USD/JPY pair gained traction in the second half of the day and rose to a fresh session high of 108.36. However, with U.S. President Donald Trump's latest remarks on the U.S.-China trade conflict weighed on the market sentiment and caused the pair to lose its momentum. As of writing, the pair was up 0.3% on the day at 108.20.

Earlier today, the data published by the U.S. Census Bureau showed that retail sales in June increased by 0.4% to beat the market expectation of 0.1% to help the greenback outperform its major rivals. Moreover, following Monday's technical drop, the 10-year US Treasury bond yield gained traction and was last up nearly 2% on the day to provide an additional boost to the positively-correlated pair.

On the other hand, commenting on the U.S.-China trade conflict, President Trump said they still had a long way to go before concluding the negotiations and added that they could start imposing tariffs on additional $325 billion worth of Chinese goods. Major equity indexes in the U.S. turned south on these remarks and allowed safe-havens to show resilience vs the greenback.

Later in the session, investors will be paying close attention to FOMC Chairman Powell's remarks. Chicago Fed President Charles Evans is scheduled to deliver a speech before the end of the day as well.

Technical levels to watch for


Today last price 108.22
Today Daily Change 0.31
Today Daily Change % 0.29
Today daily open 107.91
Daily SMA20 108
Daily SMA50 108.74
Daily SMA100 110.05
Daily SMA200 110.74
Previous Daily High 108.11
Previous Daily Low 107.8
Previous Weekly High 109
Previous Weekly Low 107.8
Previous Monthly High 108.8
Previous Monthly Low 106.78
Daily Fibonacci 38.2% 107.92
Daily Fibonacci 61.8% 107.99
Daily Pivot Point S1 107.77
Daily Pivot Point S2 107.63
Daily Pivot Point S3 107.46
Daily Pivot Point R1 108.08
Daily Pivot Point R2 108.25
Daily Pivot Point R3 108.39



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