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Valeria Bednarik, a Chief Analyst at FXStreet, forecasts the USD/JPY pair breaking the critical 110.00 figure as risk is skewed to the upside.

Key quotes

“Reinforcing the positive sentiment, China announced it would halve tariffs on $75B worth of US goods starting February 14, as agreed on phase one of the trade deal. The US will also reduce tariffs on some Chinese goods on the same date, from 15% to 7.5%.”

“The pair is consolidating near highs, with the risk skewed to the upside in the short-term. In the 4 hours chart, the advance extended above moving averages, while the 20 SMA has begun crossing above the larger ones.”