USD/JPY hits 2019 high above 111.00 on Trump's flexibility on tariff deadline

  • Trump's flexibility on tariff deadline is adding to the bullish tone around USD/JPY
  • The pair may find acceptance above 111.00 if German GDP prints above estimates and equities put on a good show, courtesy of easing US-China trade tensions. 

The already buoyant USD/JPY has received a further boost from the news that President Trump is considering extending the tariff deadline by 90 days. 

As of writing, the USD/JPY is trading at 111.00, having clocked a 2019 high of 111.13 a few minutes before press time. 

Back in early December. China and the US agreed to put tariffs on hold for a 90-day period and give negotiations a change. So far, however, a breakthrough deal has remained elusive. Both sides remain stuck on key issues like intellectual property theft. 

That said, Trump's willingness to let the March 1 deadline to raise tariffs on Chinese products pass without penalty seems to have put a bid under the risk assets. 

As of writing, the S&P 500 futures are reporting a 0.11 percent gain. As a result, the dollar continues to gain ground against the Japanese yen, amid losses against other majors. 

Looking ahead, USD/JPY could find acceptance above 111.00, if equities extend gains on easing US-China trade tensions and German Q4 GDP alleviates recession fears to some extent. 

Technical Levels

    1. R3 1.1398
    2. R2 1.1371
    3. R1 1.1319
  1. PP 1.1291
    1. S1 1.1239
    2. S2 1.1212
    3. S3 1.116

 

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