- Drops in tandem with S&P 500 futures and Treasury yields
- Risk-off intensifies as optimism over China’s Liu visit confirmation fades.
- Focus shifts to Fedspeak and US JOLTS job openings data.
The USD/JPY pair failed once again to sustain at higher levels near 110.85 region and turned gradually lower to print fresh daily lows at 110.54, as risk-off moods intensified following some headlines reported by the Chinese Communist Party paper, People’s Daily on the renewed US-China trade spat.
The Chinese daily carried a strongly-worded editorial, warning the US not to expect any concessions at the trade talks in DC, CNBC reported. The editorial read: “When things are unfavorable to us, no matter how you ask, we will not take any step back. Do not even think about it.”
The Yen caught a fresh bid-wave and quickly erased losses incurred against its American counterpart following the above-mentioned headlines. The S&P 500 futures accelerated its declines and tested the 2,900 level while the Treasury yields lose nearly 1% across the curve.
In early Europe, the USD/JPY pair bounced to fresh session tops at 110.85 after markets cheered the confirmation reports of the Chinese Vice Premier Liu He visiting the US from May 9th to May 10th, despite the recent Trump’s tariff threat.
The spot now remains well offered heading towards the Fedspeak and US JOLT jobs opening data release, having found little support from the renewed uptick in the US dollar across its main rivals.
USD/JPY Technical Levels
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