- The escalating US-China trade war and the resulting risk aversion have pushed the USD/JPY below the 50-day moving average (MA) for the first time since April 29.
- The pair also hit a two-week low of 109.45 in Asia.
The bid tone around the Japanese Yen (JPY) strengthened in Asia, pushing the USD/JPY down to 109.45 – the lowest level since June 11.
Further, the spot fell below the ascending (bullish) 50-day MA for the first time since April 29. At press time, the currency pair is trading at 109.50 – down 0.43 percent and the 50-day MA is located at 109.55.
The USD/JPY pair ran into offers after reports hit the wires that Trump administration is planning to restrict many Chinese companies from investing in US technology companies. The news has likely pushed the S&P 500 futures down by 0.5 percent and has put a bid under the anti-risk JPY.
The currency pair will likely find acceptance below the key moving average should the major stock markets in Asia and Europe report big losses on rising US-China trade tensions.
USD/JPY Technical Levels
Resistance: 109.55 (50-day MA), 109.97 (5-day MA), 110.21 (200-day MA).
Support: 109.20 (June 8 low), 108.82 (38.2% Fib R of March 26 low – May 21 high), 108.16 (100-day MA).
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