USD/JPY plummets below 107.60 area after Trump announces additional tariffs on China

US President Trump says additional 10% tariffs on Chinese imports will kick off on September 1.
US 10-year Treasury bond yield erases more than 5% on Thursday.
US Dollar Index turns red on the day below the 98.50 mark.

Eren Sengezer FXStreet

The USD/JP pair came under strong bearish pressure in the last minutes and slumped to its lowest level since July 22 at 107.57. As of writing, the pair was trading a few pips above that level, losing 1.05% on a daily basis.

Following this week's high-level talks in Shanghai, US President Donald Trump today announced that they will impose a 10% tariff on the remaining Chinese imports worth $300 billion starting September 1. Although Trump finished the announcement with: "We look forward to continuing our positive dialogue with China on a comprehensive trade deal, and feel that the future between our two countries will be a very bright one," a fresh wave of flight-to-safety hit the markets.

10-year US T-bond yield drops to lowest level since November 2016

Reflecting the risk-off atmosphere, the 10-year US Treasury bond yield extended its slide and was last seen losing nearly 7% on the day. Falling T-bond yields also weighed on the Greenback and the US Dollar Index was last down 0.2% on the day at 98.38. Furthermore, Wall Street's main indexes erased their early gains and both the Dow Jones Industrial Average and the S&P 500 turned red on the day.

Technical levels to watch for

USD/JPY

Overview
Today last price	107.91
Today Daily Change	-0.87
Today Daily Change %	-0.80
Today daily open	108.78

Trends
Daily SMA20	108.28
Daily SMA50	108.33
Daily SMA100	109.68
Daily SMA200	110.49

Levels
Previous Daily High	109.01
Previous Daily Low	108.49
Previous Weekly High	108.83
Previous Weekly Low	107.7
Previous Monthly High	109.01
Previous Monthly Low	107.21
Daily Fibonacci 38.2%	108.81
Daily Fibonacci 61.8%	108.69
Daily Pivot Point S1	108.51
Daily Pivot Point S2	108.24
Daily Pivot Point S3	108
Daily Pivot Point R1	109.03
Daily Pivot Point R2	109.28
Daily Pivot Point R3	109.54

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.