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  • USD/JPY fails to cheer mildly positive comments from the BOJ minutes.
  • The minutes’ statement showed most policymakers agree that the momentum towards the price stability target isn’t lost.
  • US-China political tension, hard Brexit fears keep risk-off in play.

USD/JPY clings to 109.40 as the Tokyo opens for trading on Tuesday. The pair shrugs off the recently released minute statement of the October month meeting while focusing more on the trade/Brexit fears.

The minutes’ statement highlighted the downside risk while also marked agreement between the policymakers that the momentum towards achieving the price stability target won’t be lost.

Read: BoJ Minutes: No possibility that the momentum toward achieving the price stability target would be lost

Traders have recently been concentrating on the US-China tussle as Beijing criticized the US interference in matters relating to Hong Kong, Taiwan, etc. On the other side, US President Donald Trump signaled nearness to sign the phase-one deal. Recently, Chinese media has been slashing warning signs to the US and also mentions that the recent tariff relief as not the sign of the US trade war.

Elsewhere, the UK PM’s passage of Withdrawal Agreement Bill and a clear majority in the House of Commons sparks fear of the hard Brexit among the European Union (EU) leaders. Further, risks of the Scottish referendum and likely challenges to German pharmaceuticals in case of hard Brexit adds to the market’s risk aversion.

In doing so, the US 10-year treasury yields a step back from the previous day’s rise to 1.92% while S&P 500 Futures stay mildly bid around 3,228.

Moving on, Christmas holidays in major Asian nations and a lack of data/events will join the year-end trading lull to offer a boring day ahead. However, trade/political headlines will be followed for fresh impulse.

Technical Analysis

Prices are likely to stay under pressure unless breaking 109.75/80 range, including the recent highs.