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The Japanese yen enjoys trade war escalation
Forex
05/17/2019

The Japanese yen enjoys trade war escalation

USDJPY made some bullish attempts early on Friday but faced rejection from one-week highs around the 110.00 figure and turned negative on the day after a brief relief yesterday.

USDJPY made some bullish attempts early on Friday but faced rejection from one-week highs around the 110.00 figure and turned negative on the day after a brief relief yesterday. The pair retreated closer to mid-109.00s, where is received a short-term support in the form of the 100-hour moving average.

The yen’s safe-haven status if further underpinned by the lingering US-China trade tensions. The trade spat escalated further on Friday after China said that it is no longer interested in resuming trade talks with the US under the current threat to escalate tariffs.

The reports intensified concerns over a full-blown trade war between the world’s two largest economies. This in turn provided another lift to the Japanese currency which could go higher if the relations between Washington and Beijing continue to deteriorate. Technically, the pair needs to hold above the 109.30 area so that not to threaten the 109.00 level in the short term.

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