- The incoming positive trade-related headlines remained supportive.
- A subdued USD price action seemed to be the only factor capping gains.
- The focus remains glued to the US CPI figures and US-China trade talks.
The USD/JPY pair reversed an early Asian session dip drop to the 107.00 neighbourhood and rallied to over one-week tops in the last hour, albeit quickly retreated few pips thereafter.
The pair built on this week’s goodish bounce from the weekly bearish gap opening and gained some follow-through traction on Wednesday in reaction to reports that China is still open to agreeing on a partial trade deal with the US despite the recent development.
Renewed trade optimism remains supportive
The pair did witness some pullback earlier this Thursday amid nervousness ahead of the high-level US-China trade negotiations. The dip was quickly bought into on the back of growing trade optimism, which continued weighing on the Japanese Yen’s perceive safe-haven status.
Meanwhile, the latest leg of a sudden pick up over the past hour or so was triggered by a Bloomberg report that the US is considering entering into a currency agreement with China as a part of a partial trade deal, though a subdued US Dollar price action kept a lid on any strong follow-through.
Despite the incoming positive trade-related headlines and Wednesday’s less dovish FOMC meeting minutes, the Greenback struggled to gain any meaningful traction and remained on the defensive in the wake of a weaker tone surrounding the US Treasury bond yields.
A subdued USD price action seemed to be one of the key factors capping any strong gains for the major ahead of Thursday’s important release of the latest US consumer inflation figures and the resumption of the US-China trade talks.
Technical levels to watch
Share
