USD/JPY clings to small daily gains above 109.30 as risk rally loses momentum

10-year US Treasury bond yield is consolidating Thursday's gains.
US Dollar Index clings to this week's gains above 98.
Focus will remain on US-China trade headlines amid an empty economic calendar.

Eren Sengezer FXStreet

The USD/JPY pair capitalized on the upbeat market mood on Thursday and climbed to its highest level since late May at 109.49 but has gone into a consolidation phase on Friday. As of writing, the pair was trading at 109.35, adding 0.07% on a daily basis.

JPY struggles to find demand as a safe haven

Reports of China and the United States agreeing to roll back tariffs as part of the phase-one of the trade deal provided a boost to the risk sentiment. Heightening the expectations of a trade deal to be announced soon, a White House spokesperson told Fox News on Thursday that they were 'very optimism' a deal will be finalized with China soon.

The 10-year US Treasury bond yield closed the day with daily gain of more than 5% after rising as much as 7% on Thursday, and Wall Street's main indexes hit fresh all-time highs.

With the lack of significant developments surrounding the US-China trade dispute on Friday, the market action turned subdued and paved the way for consolidation. In the second half of the day, Wholesale Inventories and the University of Michigan's Consumer Sentiment Survey from the United States will be looked upon for fresh impetus but the market's risk perception is likely to dominate the pair's movements ahead of the weekend. Ahead of these data releases, the US Dollar Index is up 0.08% on the day at 98.20.

Technical levels to consider

USD/JPY

Overview
Today last price	109.33
Today Daily Change	0.06
Today Daily Change %	0.05
Today daily open	109.27

Trends
Daily SMA20	108.67
Daily SMA50	107.92
Daily SMA100	107.62
Daily SMA200	109.04

Levels
Previous Daily High	109.49
Previous Daily Low	108.65
Previous Weekly High	109.29
Previous Weekly Low	107.89
Previous Monthly High	109.29
Previous Monthly Low	106.48
Daily Fibonacci 38.2%	109.17
Daily Fibonacci 61.8%	108.97
Daily Pivot Point S1	108.78
Daily Pivot Point S2	108.29
Daily Pivot Point S3	107.94
Daily Pivot Point R1	109.63
Daily Pivot Point R2	109.98
Daily Pivot Point R3	110.47

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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