USD/JPY slumps to 108.50 after report suggesting trade deal could slip into 2020

  • Reuters reports that US and China may not complete the trade deal this year.
  • 10-year US Treasury bond yield erases more than 2%.
  • US Dollar Index stays near 98 ahead of FOMC minutes.

After advancing to a fresh daily high above the 108.70 mark, the USD/JPY pair lost its traction as the latest headlines surrounding the United States (US)-China trade dispute triggered fresh risk-off flows and ramped up the demand for safe-haven JPY. As of writing, the pair was flat on the day at 108.52.

JPY capitalizes on US-China trade pessimism

Citing experts on trade and people close to the White House, Reuters on Wednesday reported that the trade deal with China could slip into next year. Although the article further noted that December rate hikes could be suspended if talks go well, the 10-year US Treasury bond yield turned south to reflect the flight to safety. At the moment, the 10-year T-bond yield is down 2.7% on a daily basis. Additionally, Wall Street's three main indexes are all down between 0.8% and 1.2%.

On the other hand, the greenback stays relatively resilient against its other major rivals despite the shift in the market mood with the US Dollar Index staying in its daily range near the 98 handle.

The Federal Open Market Committee (FOMC) will publish the minutes of its October meeting at the top of the hour and investors will be looking for fresh clues regarding the near-term policy outlook.

Technical levels to watch for


Today last price 108.53
Today Daily Change -0.02
Today Daily Change % -0.02
Today daily open 108.55
Daily SMA20 108.77
Daily SMA50 108.26
Daily SMA100 107.7
Daily SMA200 108.99
Previous Daily High 108.84
Previous Daily Low 108.45
Previous Weekly High 109.3
Previous Weekly Low 108.23
Previous Monthly High 109.29
Previous Monthly Low 106.48
Daily Fibonacci 38.2% 108.6
Daily Fibonacci 61.8% 108.69
Daily Pivot Point S1 108.39
Daily Pivot Point S2 108.22
Daily Pivot Point S3 108
Daily Pivot Point R1 108.78
Daily Pivot Point R2 109
Daily Pivot Point R3 109.17



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