- The US and China are resuming trade talks on Thursday which prompts some risk-on mood in the stock market.
- The US dollar bull trend remains intact while the yields keep pushing higher.
The USD/JPY is trading at around 110.82 up 0.39% on Thursday as the US Treasury yields are moving higher.
The USD/JPY found an intraday floor at 110.05 in Asia and has been steadily climbing throughout the European session in line with the yields on 10-year US Treasuries were climbing higher towards 3.12%
Compounding the USD/JPY bull case is the recent risk-on mood on Wall Street as the US and China are resuming talks over trade wars. The latest news reveals that China does not want an escalation in the trade war conflict. The yen is considered a safe-haven currency and generally speaking traders sell the Japanese currency when the mood is optimistic.
USD/JPY 4-hour chart
Valeria Bednarik, FXStreet's own American Chief Analyst says: “the 4 hours chart shows that the pair continues advancing above firmly bullish 100 and 200 SMA, although technical indicators lack upward momentum, holding anyway near overbought readings. February's high at 110.47 is now the immediate support, followed by the 110.00 figure, where buyers should surge to keep the upside favored. To the upside, an acceleration through the daily high should lead to a continued advance up to the 111.60 region.”
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