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Thomson Reuters
Dec 05 - 12:12 PM
USD/JPY - COMMENT-USD/JPY, Crosses Hold Key Supports As Trade Fear Falls
First appeared on eFXplus on Dec 05 - 10:25 AM

USD/JPY and other key JPY crosses held major support levels yesterday amid yen haven buying on doubts about a U.S.-China trade deal being done, but belated acknowledgement by Chinese officials that good faith efforts to reach a deal are being made nL4N1YA1NB has reduced yen haven bids today.
With U.S. financial markets closed for a national day of mourning, trading has slowed, but for now, key supports tested yesterday in USD/JPY, EUR/JPY and GBP/JPY remain intact.
USD/JPY's daily Cloud top and lower 21-day Bolli band, last at 112.67/50 (EBS), have attracted buyers.
Local offers thicken in the 113.20-40 range where Ichi and shorter-term MAs are clustered.
Key above is the downtrend from Oct's peak, now at 114.
The Fed's Beige Book report today, and non-mfg ISM Thursday, are the key data events prior to Friday's NFPs report and Dec 19 FOMC.
Unfortunately, decent, particularly inflationary, data may not help the USD and USD/JPY much if it hastens inversion of the Treasury yield curve by bolstering waning rate hike expectations, unless market confidence in a good trade deal rises enough to allay global slowdown fears and haven yen demand.

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Source:
Thomson Reuters IFR Markets

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