News

USD/JPY hits fresh weekly lows on US/China trade headlines

  • Yen consolidates gains on a quiet session and lower US yields. 
  • US Dollar loses strength after DXY reached fresh monthly highs but failed to run higher. 

The USD/JPY printed a fresh daily low during the American session amid a wave of risk aversion on US/China trade headlines. The pair dropped to 108.64, hitting a fresh one-week low and then bounced modestly to the upside. 

Bearish pressure prevails 

As of writing trades at 108.75/80, so far it remains above the 108.70/75 support area but still faces downside pressure. A break lower would likely accelerate the decline toward 108.45; below the next support stands at 108.20. 

Price is about to close around daily lows after reports suggested that US-China trade talks are being affected by farm purchases. Those headlines boosted the demand for safe-haven assets further. 

Earlier today, US inflation data and Fed’s Chair Powell comments at Congress were ignored by market participants. During the Asian session, Japanese growth data is due. 

Articles You May Like

ECB to soon announce the start of the strategic review – ING
Stock Market December Forecast: Trade War Headlines to Stoke Volatility
What you need to know before the markets open: Chinese data a positive for Asia open
EUR/USD could now test 1.1096 and above – UOB
Australian fund managers are preparing for RBA QE

Leave a Reply

Your email address will not be published. Required fields are marked *