USD/JPY positive on Mnuchin’s trade deal comment – sell the boun
As we go into the weekly close, we want to have a look at a currently very interesting currency pair: USD/JPY. The excitement results mainly out of the upcoming G20 summit where market participants hope to get clear signs in regards to a potential between the US and China.
On Wednesday, US Treasury Secretary Mnuchin said a US-China trade deal is 90% complete…
Unfortunately, this is not shocking news, and was announced in a very similar way in April. We all know that shortly after the negotiations between the USA and China collapsed shortly after with US president Trump announcing a new round of tariffs on Chinese goods and putting Huawei on a blacklist.
That said, the initial bullish reaction in USD/JPY back towards and slightly above 108.00 on Wednesday/Thursday may be short-lived with the currency pair finding a potential short-trigger around 107.80/108.00 and taking on bearish momentum again.
If, over the weekend and during the G20 summit in Osaka/Japan, it appears that still no deal between the USA and China is coming, the path down to the Flash Crash lows from January around 105.00 seems levelled.
Technically this bearish outlook stays true as long as we trade below 108.70/109.00 on a daily time frame.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
On Wednesday, US Treasury Secretary Mnuchin said a US-China trade deal is 90% complete…
Unfortunately, this is not shocking news, and was announced in a very similar way in April. We all know that shortly after the negotiations between the USA and China collapsed shortly after with US president Trump announcing a new round of tariffs on Chinese goods and putting Huawei on a blacklist.
That said, the initial bullish reaction in USD/JPY back towards and slightly above 108.00 on Wednesday/Thursday may be short-lived with the currency pair finding a potential short-trigger around 107.80/108.00 and taking on bearish momentum again.
If, over the weekend and during the G20 summit in Osaka/Japan, it appears that still no deal between the USA and China is coming, the path down to the Flash Crash lows from January around 105.00 seems levelled.
Technically this bearish outlook stays true as long as we trade below 108.70/109.00 on a daily time frame.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.