- USD/JPY takes cues from US-China trade woes-led risk aversion.
- Japanese Preliminary Q3 GDP miss fails to move the spot.
- Focus stays on trade developments, US data and more Powell.
The USD/JPY pair stalls its recovery from six-day lows of 108.65 and holds its range around 108.80 region, as the renewed US-China trade jitters negate the impact of the downbeat Japanese growth figures on the Yen.
USD/JPY: 200- DMA at 109.02 – A tough nut to crack
The Japanese Preliminary Q3 GDP rate grew less-than-expected across the time horizon but it the Japanese yen paid little heed to the downbeat release, as it continued to find support from the risk-off action in the global equities and Wall Street futures after US-China trade tensions resurfaced in the overnight trades.
A fresh Wall Street Journal (WSJ) report stating that US-China talks “hit a snag over farm purchases”, triggered a renewed risk-off wave across the American markets that spoilt the Wall Street party induced by the Fed Chair Powell’s upbeat remarks on the US economic outlook.
Meanwhile, the spot also fails to find any impetus from the range-bound trading seen in the US dollar across its main peers over the last two trading sessions. Also, as the technical set up keeps the pair capped between the 200-DMA at 109.02 and channel support seen at 108.54.
The focus stays on the US-China trade headlines and its impact on the risk sentiment, which continues to play a pivotal role in the USD/JPY price-action. Markets also look forward to the US Producer Price Index and Jobless Claims data ahead of Day 2 of Powell’s testimony.
USD/JPY Technical levels to consider
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