USD/JPY dips below 200-day MA as US and China escalate their trade tiff
- US-China tit-for-tat tariffs weigh over risk sentiment.
- Anti-risk JPY is solid bid, USD/JPY is trading below 200-day MA.
The risk is being sold in Asia as US and China appear increasingly headed towards a full-fledged trade war.
Consequently, the bid tone around the anti-risk JPY strengthened, pushing the USD/JPY pair below the 200-day moving
average (MA) of 110.22.
The spot hit a session low of 110.02 and was last seen trading at 110.15.
S&P 500 futures drop on US-China tariff slugfest
President Trump has asked the US Treasury to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent."
The move comes after China slapped a 25 percent tariff on 545 American imports in retaliation to Trump's decision to impose tariffs on $50 billion worth of Chinese imports, which was announced Friday.
The equities are clearly not liking the tit-for-tat tariffs and the rising risk of a full-blown trade war. As of writing, S&P 500 futures are down 0.55 percent.
The USD/JPY pair will likely find acceptance below 110.00 if the Shanghai Composite reports losses in early trade.
USD/JPY Technical Levels
Resistance: 110.22 (200-day MA), 110.57 (session high), 110.90 (June 15 high).
Support: 110.00 (psychological support), 109.33 (ascending 50-day MA), 109.20 (June 8 low).
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
