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Nov 08 - 12:12 PM
USD/JPY - COMMENT-Trump's Tariffs Deal Pushback Leaves USD/JPY Longs In Limbo
First appeared on eFXplus on Nov 08 - 10:50 AM

USD/JPY and global risk traders have been thrown fresh curveballs by the White House regarding where a phase one trade deal with China stands, leaving longs to lighten up ahead of the weekend, a long one for bond traders in the United States.
The White House earlier today said tariffs could be removed if a trade deal was struck with China nW1N26F00P.
But Trump now says he has not agreed to roll back tariffs, though China would like him to nW1N26G02B.
USD/JPY's falling back from today's 109.48 high on EBS, which is a tick below Thursday's multi-month peak beyond assorted technical hurdles in the 109.32-41 range, none of which were closed above nL2N27O0M5.
The trade uncertainty has taken USD/JPY toward 200-DMA support at 109.03, led by swift pullbacks in Treasury yields and another small setback for stocks.
USD/JPY already reached the Aug.
1 pre-trade war escalation day peak at 109.32 and 10-Year Treasury yields are close to that day's breakdown point, essentially pricing out the Sept.
1 tariff hikes and the threatened Oct.
15 and Dec.
15 hikes, the former since retracted.
Risk and rates-sensitive USD/JPY traders likely will need a phase one deal, with tariff reductions and a signing date and place, to reach the next technical targets by 110.50 nL2N27N1JX.

Chart: Click here

Refinitiv IFR Research/Market Commentary


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