USD/JPY climbs to fresh daily highs above 108.70 on upbeat US data

US Pres. Trump says trade deal with China is "potentially very close."
Upbeat Manufacturing PMI and UoM Consumer Sentiment data boost USD.
US Dollar Index climbs to fresh weekly highs near 98.20.

Eren Sengezer FXStreet

After edging down to 108.50 area in the early trading hours of the American session, the USD/JPY pair reversed its direction and advanced to a fresh daily top of 108.73 but seems to be having a difficult time stretching higher as investors continue to react developments surrounding the United States (US)-China trade dispute.

Earlier in the day, US President Donald Trump said a trade deal with China was "potentially very close" to cause safe-haven assets such as the JPY to lose interest. The 10-year US Treasury bond yield, which lost as much as 2% earlier in the day, erased almost all of its losses on Trump's comment.

However, following a Reuters report suggesting that all five commissioners of the US Federal Communications Commission (FCC) will vote to bar Chinese telecommunication giant Huawei and ZTE from government subsidy programs, the 10-year US T-bond yield lost its traction and was last down 1% on the day, suggesting that risk sentiment has started to sour on this headline.

Reflecting the shift in the market mood, the USD/JPY pair turned flat on the day near 108.60 and is looking to close the second straight week in the negative territory.

USD strength helps pair stay above 108.50

On the other hand, the IHS Markit's Manufacturing Purchasing Managers' Index (PMI) rose to 52.2 in November's preliminary reading to surpass the market expectation of 51.5 and provided a boost to the greenback. Additionally, the University of Michigan's Consumer Sentiment Index improved to 96.8 in November to support the US Dollar Index, which was last up 0.25% on the day at 98.20.

Technical levels to watch for

USD/JPY

Overview
Today last price	108.64
Today Daily Change	0.02
Today Daily Change %	0.02
Today daily open	108.62

Trends
Daily SMA20	108.76
Daily SMA50	108.28
Daily SMA100	107.72
Daily SMA200	108.97

Levels
Previous Daily High	108.7
Previous Daily Low	108.28
Previous Weekly High	109.3
Previous Weekly Low	108.23
Previous Monthly High	109.29
Previous Monthly Low	106.48
Daily Fibonacci 38.2%	108.54
Daily Fibonacci 61.8%	108.44
Daily Pivot Point S1	108.37
Daily Pivot Point S2	108.11
Daily Pivot Point S3	107.94
Daily Pivot Point R1	108.79
Daily Pivot Point R2	108.96
Daily Pivot Point R3	109.21

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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