USD/JPY slumps below 109 on fresh US-China trade worries


  • Reuters says US-China trade deal could be delayed to December.
  • 10-year US Treasury bond yield extends losses as market sentiment turns sour.
  • US Dollar Index stays flat on the day below the 98 mark.

After spending the majority of the day moving sideways near the 109 handle, the USD/JPY pair came under strong bearish pressure in the last hour as the latest headlines surrounding the United States (US) - China trade conflict triggered fresh risk-off flows and allowed the JPY to find demand. As of writing, the pair was trading at 108.90, losing 0.22% on the day.

US-China trade agreement not a done deal

In an exclusive interview with Reuters, a senior Trump administration official said that the meeting between US President Trump and Chinese President Xi could be delayed until December amid ongoing discussions over terms and venue. "It's still possible the US-China trade pact will not be reached, but a deal is more likely than not," the official added.

The 10-year US Treasury bond yield extended its losses after this development and was last down nearly 2% on the day while Wall Street's three main indexes were down between 0.2% and 0.4%.

On the other hand, the greenback also took advantage of the dismal mood as a safer alternative to European currencies and limited the pair's losses. At the moment, the US Dollar Index is unchanged on the day at 97.91.

There won't be any macroeconomic data releases from Japan on Thursday and the market's risk perception is likely to continue to dominate the pair's price action.

Technical levels to watch for

USD/JPY

Overview
Today last price 108.86
Today Daily Change -0.32
Today Daily Change % -0.29
Today daily open 109.18
 
Trends
Daily SMA20 108.53
Daily SMA50 107.81
Daily SMA100 107.59
Daily SMA200 109.03
 
Levels
Previous Daily High 109.26
Previous Daily Low 108.5
Previous Weekly High 109.29
Previous Weekly Low 107.89
Previous Monthly High 109.29
Previous Monthly Low 106.48
Daily Fibonacci 38.2% 108.97
Daily Fibonacci 61.8% 108.79
Daily Pivot Point S1 108.7
Daily Pivot Point S2 108.22
Daily Pivot Point S3 107.94
Daily Pivot Point R1 109.46
Daily Pivot Point R2 109.74
Daily Pivot Point R3 110.22

 

 

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

GBP/USD: Bears eye 1.25 as disappointing UK GDP knocks off yields

GBP/USD extends losses towards 1.2500, as the UK GDP disappointment weighs negatively on the 2-year Gilt yields. Broad US dollar strength amid risk-off mood also adds to the bearish pressure on the cable. 

GBP/USD News

EUR/USD under pressure below 1.1350 amid risk-aversion

EUR/USD remains pressured below 1.1350, as US dollar trades firmer amid broad risk-aversion. The German ZEW Survey to show signs of an economic turnaround. Heightened expectations for an EU fiscal stimulus plan could buoy the shared currency. 

EUR/USD News

Gold: $1796 is the level to beat for the XAU bears

Gold is trying hard to recover ground above the $1800 mark, as the US dollar continues to benefit from broad risk-aversion amid looming coronavirus risks. Let’s see how it is positioned ahead of the critical US CPI release.

Gold News

Forex Today: US dollar seizes control as risk aversion returns, a busy docket ahead

Broad US dollar strength extended into Asia, as risk-averse market conditions persisted amid intensifying coronavirus fears and US-China tensions. The Asian equities followed the late sell-off on Wall Street while the US stock futures struggled with its recovery.

Read more

WTI recovers from intraday low under $40.00 ahead of API inventories

WTI’s pullback from $39.30 fails to defy a two-day losing streak. China’s sustained increase in oil imports confronts chatter of easing output cuts. US inflation data, API stockpiles and American earnings are in the spotlight.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures