- US-China trade deal hopes helped regain some traction on Friday.
- The technical set-up might have shifted in favour of bearish traders.
- Investors look forward to the US macro data for a fresh impetus.
The USD/JPY pair regained some positive traction on Friday and recovered a part of the previous session's downfall to 1-1/2 week lows.
The pair stalled its recent pullback from multi-month lows, around mid-109.00s, and managed to attract some buying interest on the last trading day of the week amid receding demand for traditional safe-haven currencies – including the Japanese Yen.
Focus remains on trade developments
The overnight comments by the White House economic adviser Larry Kudlow, saying that there has been “very good progress,” and that a US-China trade agreement was close, revived hopes of an imminent US-China trade deal and boosted the global risk sentiment.
The risk-on mood was further evident from a strong pickup in the US Treasury bond yields, which extended some support to the US Dollar and further collaborated to the pair's positive move for the first day in the past six trading session, back above mid-108.00s.
From a technical perspective, the pair on Thursday failed to defend a support marked by 2-1/2-month-old ascending trend-line. Hence, it remains to be seen if the pair is able to capitalize on the momentum or meets with some fresh supply at higher levels.
Moving ahead, Friday's US economic docket – highlighting the release of monthly retail sales and some second-tier manufacturing data – might influence the USD price dynamics and produce some short-term trading opportunities later during the early North-American session.
Technical levels to watch
|Today last price||108.54|
|Today Daily Change||0.11|
|Today Daily Change %||0.10|
|Today daily open||108.43|
|Previous Daily High||108.86|
|Previous Daily Low||108.23|
|Previous Weekly High||109.49|
|Previous Weekly Low||108.1|
|Previous Monthly High||109.29|
|Previous Monthly Low||106.48|
|Daily Fibonacci 38.2%||108.48|
|Daily Fibonacci 61.8%||108.62|
|Daily Pivot Point S1||108.16|
|Daily Pivot Point S2||107.88|
|Daily Pivot Point S3||107.53|
|Daily Pivot Point R1||108.79|
|Daily Pivot Point R2||109.14|
|Daily Pivot Point R3||109.42|
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.