USD/JPY: Recovery gathers steam on US-China trade deal hopes


  • USD/JPY rises 10-pips and regains 108.50 on US’ Kudlow’s trade optimism.
  • US Treasury yields, S&P 500 futures rebound alongside positive Asian stocks.
  • Focus on US-China trade talks, US Retail Sales data for fresh impetus.

The USD/JPY overnight rebound extends in Friday’s Asian trades, as the bulls regain the 108.50 after the risk-recovery gathered steam on renewed optimism surrounding the US-China trade deal.

Fresh hopes of a US-China trade deal returned to markets following the goodwill gestures by China, as it announced lifting the restrictions on the US poultry imports. Further, the news of the restart of the US-China trade talks later on Friday also added to improved risk appetite.

However, the latest comments from the White House Economic Adviser Kudlow, citing that “we're getting close” to trade deal with China, acted as the main catalyst behind the latest pop in the risk sentiment, as reflected by the bounce-back in the US Treasury yields and S&P 500 futures.

On Thursday, the spot fell to its lowest level in eight days at 108.25 after global stocks and US Treasury yields tumbled on souring risk sentiment, in response to fresh China slowdown fears and Germany’s narrow escape to a recession.

The focus will likely remain on the primary level phone call between the US and Chinese trade teams for fresh cues on the risk trends that will eventually impact anti-risk Yen in the day ahead. Also, of relevance remains the US Retail Sales data due later in the NA session at 1330 GMT.

USD/JPY Technical levels to consider

USD/JPY

Overview
Today last price 108.50
Today Daily Change 0.07
Today Daily Change % 0.06
Today daily open 108.43
 
Trends
Daily SMA20 108.74
Daily SMA50 108.17
Daily SMA100 107.69
Daily SMA200 109.01
 
Levels
Previous Daily High 108.86
Previous Daily Low 108.23
Previous Weekly High 109.49
Previous Weekly Low 108.1
Previous Monthly High 109.29
Previous Monthly Low 106.48
Daily Fibonacci 38.2% 108.48
Daily Fibonacci 61.8% 108.62
Daily Pivot Point S1 108.16
Daily Pivot Point S2 107.88
Daily Pivot Point S3 107.53
Daily Pivot Point R1 108.79
Daily Pivot Point R2 109.14
Daily Pivot Point R3 109.42

 

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD advances above 1.14 after unchanged ECB, mixed US data

EUR/USD is trading above 1.14, higher after the ECB left policy unchanged and called governments to act. US retail sales beat with 7.5% while jobless claims disappointed with 1.3 million. US coronavirus figures are showing further increases in cases.

EUR/USD News

GBP/USD advances above 1.26 amid mostly upbeat US, UK data

GBP/USD is trading above 1.26, higher. The UK jobs reports showed low unemployment but also depressed wages. US retail sales beat expectations but jobless claims remain high. 

GBP/USD News

Gold trades with modest losses, downside remains limited

Gold witnessed a modest intraday pullback amid a pickup in the USD demand. The prevalent risk-off mood extended some support to the safe-haven metal. A sustained break below $1800 is needed to confirm a bearish break.

Gold News

Why is the crypto market falling today?

War for dominance impacts the market and heralds several days of turbulence. Fight between Bitcoin and Ethereum hurts the Altcoin segment, which is largely overbought after weeks of euphoria. Ripple is the most affected of the Top 3 and steps back into a high-risk environment.

Read more

Oil : The price action seems indecisive at these elevated levels

WTI is still in a bull trend on the chart below but at these elevated levels, it seems the price seems to be very jittery. Previously within this trend when the price moved higher the size of the bullish candles was bigger. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures