- USD/JPY has rallied on trade talk progress headlines.
- USD/JPY is currently trading at 111.43 having made a session high of 111.51 so far from a low of 111.21.
USD/JPY bulls are taking charge as risk-sentiment improves following noise hitting the wires over Sino/US trade talks. The FT has reported that U.S. and China haggle on Trade Deal Enforcement and Implementation stating that China Officials have resolved most of the trade deal issues.
US and China draw closer to final trade agreement – Financial Times
Meanwhile, the US 10yr treasury yield had hardly moved from 2.47% overnight, with the 2yr yield holding at 2.30%. The dollar is making hard work of the upside and
with the Fed funds futures prices continuing to imply a 90% chance of a Fed rate cut by December, that’s hardly surprising – (EM-FX is a likely place to look for softer dollar and it may take some time to trickle through to the G10 space).
US data
As for US data, the core durable goods orders fell 0.1% m/m in February to leave the 3-month average at 0.0%. “That implies no acceleration in underlying investment which in turn suggests that potential US growth is not picking up and remains stuck around 1.9% y/y,” analysts at ANZ Bank explained.
USD/JPY levels
The rallies continue to face some dense resistance offered by the 200-day ma and downtrend at 111.47/57, but a break there, bulls can target the 112.13 March high with 112.50 and the mid-December high at 113.71 overhead.
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