USD/JPY clings to small gains above 109 as focus shifts to Trump speech

US Dollar Index extends consolidation above 98.
US Pres. Trump is expected to deliver remarks on trade conflict with China.
Wall Street looks to open the day modestly higher.

Eren Sengezer FXStreet

The USD/JPY pair is moving sideways above the 109 handle for the second straight day as investors stay on the sidelines while waiting for United States (US) President Donald Trump to deliver fresh remarks on the trade dispute with China. As of writing, the pair was up 0.15% on a daily basis at 109.20.

Focus shifts to US President Trump's speech

Ahead of President Trump's speech at a luncheon hosted by the Economic Club of New York, Politico reported that a source familiar with Trump's prepared remarks said that his statement on China will be constructive. If that turns out to be true, risk-on flows could re-take control of the market and make it difficult for the safe-haven JPY to find demand. In the meantime, major European equity indexes are posting modest gains on Tuesday and the S&P 500 Futures is up 0.1% to reflect a slightly upbeat market mood.

On the other hand, the US Dollar Index is moving sideways above the 98 mark in the absence of significant macroeconomic drivers, suggesting that the risk sentiment is likely to continue to impact the pair's movements.

Later in the session, Richmond Fed President Thomas Barkin and Philly Fed President Patrick Harker will be speaking as well. In the early trading hours of the Asian session, Producer Price Index (PPI) figures from Japan will be published but are likely to be ignored by investors.

Technical levels to watch for

USD/JPY

Overview
Today last price	109.2
Today Daily Change	0.15
Today Daily Change %	0.14
Today daily open	109.05

Trends
Daily SMA20	108.74
Daily SMA50	108.03
Daily SMA100	107.65
Daily SMA200	109.03

Levels
Previous Daily High	109.26
Previous Daily Low	108.9
Previous Weekly High	109.49
Previous Weekly Low	108.1
Previous Monthly High	109.29
Previous Monthly Low	106.48
Daily Fibonacci 38.2%	109.03
Daily Fibonacci 61.8%	109.12
Daily Pivot Point S1	108.88
Daily Pivot Point S2	108.71
Daily Pivot Point S3	108.52
Daily Pivot Point R1	109.24
Daily Pivot Point R2	109.43
Daily Pivot Point R3	109.6

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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