USD/JPY stays calm near 108 ahead of US data

10-year US T-bond yield rises for the fifth straight day on Friday.
China excludes agricultural products from additional tariffs on US goods.
Coming up: US Retail Sales and Consumer Confidence data.

Eren Sengezer FXStreet

After closing the previous day above the 108 handle, the USD/JPY rose to its highest level since August 1 at 108.26 boosted by the upbeat market sentiment amid hopes of the US-China trade dispute coming to an end in next months high-level talks in Washington. However, the broad-based selling pressure surrounding the USD didn't allow the pair to extend its rally during the European trading hours. As of writing, the pair was down 0.07% on the day at 108.02.

Market sentiment improves on trade headlines

Commenting on reports claiming Trump administration was considering to offer China an interim trade deal, US President Donald Trump said that he'd rather get a "whole deal" done with China rather than an interim one. Furthermore, China’s State Council today announced that they will exclude some agricultural products including soybeans and pork from additional tariffs on US imports to further boost the optimism.

The 10-year US Treasury bond yield, which closed every day of this week in the positive territory, preserved its momentum and advanced to its highest level since August 5 to reflect the upbeat market sentiment. Meanwhile, the S&P 500 Futures is up 0.35% on the day, suggesting that Wall Street's main indexes are likely to start the day in the positive territory.

On the other hand, the Greenback's dismal performance against its European counterparts makes it difficult for the pair to stretch higher. Ahead of the Retail Sales and the University of Michigan Consumer Confidence data from the US, the US Dollar Index is down 0.3% on the day at 98.05.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3224
Today Daily Change	0.0012
Today Daily Change %	0.09
Today daily open	1.3212

Trends
Daily SMA20	1.3263
Daily SMA50	1.32
Daily SMA100	1.3279
Daily SMA200	1.3314

Levels
Previous Daily High	1.3222
Previous Daily Low	1.3176
Previous Weekly High	1.3384
Previous Weekly Low	1.3158
Previous Monthly High	1.3346
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3204
Daily Fibonacci 61.8%	1.3194
Daily Pivot Point S1	1.3185
Daily Pivot Point S2	1.3158
Daily Pivot Point S3	1.314
Daily Pivot Point R1	1.323
Daily Pivot Point R2	1.3248
Daily Pivot Point R3	1.3275

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.

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