- Fading US-China trade optimism boosts JPY’s safe-haven status and exerts pressure.
- Traders eye US economic data for some short-term impetus ahead of Trump-Xi meeting.
The USD/JPY pair traded with a mild negative bias on the last trading day of the week and extended the previous session’s pullback from over one-week tops.
The pair on Thursday failed to capitalize on its early positive move to levels beyond the 108.00 handle and finally settled near the lower end of its daily trading range amid fading US-China trade optimism after China’s foreign ministry spokesman denied reports on a tentative truce between the two countries.
The clarification dampened hopes that the US President Donald Trump and his Chinese counterpart Xi Jinping will declare a trade war cease-fire at the G20 summit and provided a modest boost to the Japanese Yen’s safe-haven status and turned out to be one of the key factors exerting some pressure on the major.
Meanwhile, the US Dollar bulls seemed rather unimpressed by Thursday’s mostly in line final US Q1 GDP report – confirming the first quarter growth at 3.1% annualized rate, with a positive mood around equity markets also failing to lend any support or stall the downtick through the Asian session on Friday.
Moving ahead, Friday’s US economic docket – featuring the releases of Core PCE price index, personal income and spending data for May, Chicago PMI and revised UoM Consumer Sentiment index, will now be looked upon for some short-term trading opportunities later during the early North-American session.
Technical levels to watch
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