The story continues for USD/JPY and the 110 deal with this week
Patrons efficiently broke again above the 100-hour MA (pink line) earlier after quite a few makes an attempt over the previous three buying and selling days however beneficial properties stay capped because the 110.00 deal with stays the essential psychological barrier for USD/JPY in the mean time.
Because it stands, the main focus for the pair stays on US-China commerce talks with decrease stage discussions resuming at this time earlier than Lighthizer and Mnuchin can be assembly with Liu He later within the week.
For the pair to interrupt above 110.00, I reckon it might require some type of constructive reinforcement of a deal earlier than the 1 March deadline. In any other case, it is arduous to see danger belongings and USD/JPY rally in a sustainable method over the following few weeks.
However till commerce talks are sorted out, count on loads of push and pull across the 110.00 deal with for USD/JPY to return this week as properly – very like what we noticed final week.