A Reuters exclusive indicating a phase one trade deal between the U.S. and China may have to be delayed until at least December nL2N27M12F, rather than a November agreement both sides had been hoping for, has raised doubts among USD/JPY longs.
That makes a breakout above impressive resistance by this and last month's 109.25/29 highs nL2N27M16I contingent upon verification of a phase one deal.
The risk-off response in Treasuries, stocks and USD/JPY is being contained by the Reuters story also noting that China's push for tariff rollbacks isn't likely to undermine a deal.
In the end, USD/JPY needs Trump and Xi to confirm or deny a deal to either break USD/JPY above 61.8% of 2019's range at 109.37 toward 110 and 110.50 hurdles or to harden recent highs ahead of 109.37 and put 107.88 Fibo support in play again.
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