- 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.
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.
- R3 1.1398
- R2 1.1371
- R1 1.1319
- PP 1.1291
- S1 1.1239
- S2 1.1212
- S3 1.116
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.