USD/JPY drops to one-week lows on trade war headlines


  • Stocks hit fresh lows and Yen gains momentum after Chinese officials cancel visit to view US agriculture. 
  • USD/JPY consolidates weekly losses as risk sentiment deteriorates. 

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture. According to the media, Chinese officials will return to their country sooner than expected. The pair dropped to 107.60, reaching the lowest level since September 16. 

Gold prices rose and Wall Street turned red. The Aussie printed fresh lows across the board. The report triggered risk aversion at the end of the week and also after US President Trump mentioned that Chinese agricultural purchases will not be enough, adding he wants a complete deal. 

Rally ends on central bank’s weeks 

After hitting the strongest level in a month near 108.50, USD/JPY reversed and it is about to end the week lower, after Federal Reserve and the Bank of Japan meetings. Price found resistance around the 20-week moving average and the 108.50 barrier and turned lower. 

Higher US yields failed to boost the Greenback. The prevailing precautions tone around financial markets added support to the Yen. 

US-China trade tensions are likely to continue to be a key driver in USD/JPY. Regarding data next week, in Japan the flash PMI is due on Tuesday while in the US, the PMI will be released on Monday and on Friday PCE data.  “Japan PM Abe and US President Trump might be signing a trade agreement at the United Nations General Assembly in New York. Japan has previously said it would be willing to consider a deal that would reduce agriculture tariffs to levels previously contemplated under the Trans-Pacific Partnership. For Japan, the key thing is that Trump does not impose national security tariffs on Japanese vehicles and auto parts”, explained analysts at Danske Bank. 

Levels to watch 

USD/JPY

Overview
Today last price 107.69
Today Daily Change -0.33
Today Daily Change % -0.31
Today daily open 108.02
 
Trends
Daily SMA20 107
Daily SMA50 107.11
Daily SMA100 107.99
Daily SMA200 109.32
 
Levels
Previous Daily High 108.48
Previous Daily Low 107.78
Previous Weekly High 108.26
Previous Weekly Low 106.76
Previous Monthly High 109.32
Previous Monthly Low 104.45
Daily Fibonacci 38.2% 108.05
Daily Fibonacci 61.8% 108.21
Daily Pivot Point S1 107.71
Daily Pivot Point S2 107.4
Daily Pivot Point S3 107.02
Daily Pivot Point R1 108.4
Daily Pivot Point R2 108.78
Daily Pivot Point R3 109.09

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.

EUR/USD News

GBP/USD loses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.

GBP/USD News

USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.

USD/JPY News

Gold heads higher as Brexit uncertainty prevails over trade-deal hopes

In the final hour of trade on Wall Street, spot gold was moving in on the 1490 level, trading higher by 0.22% having travelled between a low of $1480.91 and a high of $1489.04.

Gold News

Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more

Forex MAJORS

Cryptocurrencies

Signatures