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USDJPY driven by trade headlines
Forex
10/10/2019

USDJPY driven by trade headlines

The USDJPY pair is getting more volatile as signals from the trade front are rather contradictory. In Asia, the greenback briefly jumped above...

The USDJPY pair is getting more volatile as signals from the trade front are rather contradictory. In Asia, the greenback briefly jumped above the 100-DMA to register one-week highs around 107.77 after an earlier dip to 107.00. The pair has settled around opening levels since then.

Such dynamics confirms a heightened uncertainty around the upcoming trade talks, with investors express some hopes for a progress after a report that the US is considering a currency pact with China. Also, investors are mulling the news that the US government plans to issue licenses to American companies to sell certain goods to Chinese technology giant Huawei, which could also smooth over tensions in a new round of trade talks.

Technically, USDJPY may lose the 107.00 handle once again should risk aversion reemerge any time soon. In a negative scenario, the pair may receive support just below the 106.50 area. On the upside, the greenback needs to clear the 107.80 figure which is standing on the way to 108.00. Any sign of failure of the negotiations will drive the pair lower.

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