- USD/JPY eases-off highs in tandem with Wall Street indices.
- US-China trade optimism keeps the pull back in check in early Asia.
- Markets await more clarity on the Phase One trade deal signing ahead of key US data.
Fresh bids emerged near 109.15 levels, allowing a quick bounce in the USD/JPY pair in the opening hours of Friday’s Asian trading, as the overnight risk-on theme extends, in the wake of the US-China trade optimism.
Trade-related news to remain the top driver
The ongoing developments around the Phase Qne signing of the trade deal between the US and China as well the rollback of the US tariffs on China will continue to have a major influence on the anti-risk Yen, therefore, keeping the volatility alive in USD/JPY.
The spot is heading back towards the half-yearly highs of 109.49 reached in the US last session after the Wall Street indices refreshed all-time highs after Bloomberg quoted a US official, as saying that the reports of an agreement to roll back tariffs as part of the Phase One China deal are correct. The benchmark 10-year US Treasury yields jumped 8bps to trade above 1.92%, driving the US dollar broadly higher alongside.
However, the pair failed to sustain at higher levels and eroded nearly 35-pips after the US stocks eased-off record highs on reports that the plan to rollback tariffs on China faces fears internal opposition.
Next of relevance for the major remains the Chinese Trade Balance report that may have some influence on the market mood while the trade headlines and the US Preliminary Michigan Consumer Sentiment will be closely eyed for the next moves in the prices.
USD/JPY Technical levels to consider
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