Dollar-Yen pairing restrained for now, but tariff ramp-up likely to unleash further market reaction as Friday rolls on. Market sentiment is holding steady for now ahead of the US NFP report. The USD/JPY is trading into 110.70 as the trade war between the US and China heats up, with the first volley of US tariffs on Chinese goods coming into effect. Markets are currently trading steadily following the tariff deadline, but traders are keeping an eye out for China’s reaction. The trade war between the US and China is set to spiral out of control quickly, with US President Donald Trump stating to reporters aboard Air Force One, “You have another 16 (billion dollars) in two weeks, and then, as you know, we have $200 billion in abeyance and then after the $200 billion, we have $300 billion in abeyance. Ok? So we have 50 plus 200 plus almost 300”. The potential for a worsening schism between the world’s two largest economies is keeping risk appetite at bay, and the USD/JPY pairing is trading tightly as traders await a direct response from China. Friday also brings the US Non-Farm Payrolls report at 12:30 GMT, though despite the high-impact report, market reactions are likely to be muted as broader markets react to the trade tariffs. USD/JPY levels to watch As noted by FXStreet’s own Omkar Godbole, “the probability of a big sell-off is high as indicated by Tuesday’s bearish outside-day candle (bearish pattern). Further, the outlook remains bearish while the pair is trading below 111.40 (high of the bearish outside-week candle created in May). Â The sell-off would gather pace once the USD bears beat the support of the rising trendline (drawn from March low), currently located at 110.22.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next France: Growth has peaked – BNP Paribas FX Street 4 years Dollar-Yen pairing restrained for now, but tariff ramp-up likely to unleash further market reaction as Friday rolls on. Market sentiment is holding steady for now ahead of the US NFP report. The USD/JPY is trading into 110.70 as the trade war between the US and China heats up, with the first volley of US tariffs on Chinese goods coming into effect. Markets are currently trading steadily following the tariff deadline, but traders are keeping an eye out for China's reaction. The trade war between the US and China is set to spiral out of control quickly, with US President Donald… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.