empty
 
 

2019.05.0903:08:00UTC+00Japanese Yen Climbs Amid Risk Aversion On Mounting Trade Worries

The Japanese yen strengthened against its major counterparts in the Asian session on Thursday amid risk aversion, as investors became cautious after U.S. President Donald Trump said that China "broke the deal" in the trade talks and so "they'll be paying".

Speaking at a rally in Florida, Trump blamed Beijing for collapse in trade talks, which prompted him to threaten to raise tariffs on Chinese goods.

Beijing has announced it would retaliate if tariffs rise.

China said that the communist country will take "necessary countermeasures" if the U.S. follows through on a planned increase in tariffs on Chinese goods on Friday.

Investors awaited a visit by Chinese Vice Premier Liu He for two days of negotiations in Washington this week for more direction.

The yen climbed to a 1-1/2-month high of 109.83 against the greenback and near a 2-month high of 142.87 against the pound, from its early lows of 110.12 and 143.25, respectively. The next key resistance for the yen is likely seen around 107.00 against the greenback and 139.00 against the pound.

The yen appreciated to 4-month highs of 122.91 against the euro, 107.61 against the franc and 76.55 against the aussie, off its previous lows of 123.27, 107.92 and 76.99, respectively. On the upside, 120.00, 105.00 and 75.5 are possibly seen as the next resistance levels for the yen against the euro, the franc and the aussie, respectively.

Reversing from a low of 81.72 touched at 8:00 pm ET, the yen advanced to near a 4-month high of 81.45 against the loonie. The yen is seen finding resistance around the 79.00 level.

Looking ahead, Canada trade data and new housing price index for March, U.S. PPI for April, weekly jobless claims for the week ended May 4, trade data and wholesale inventories for March are due in the New York session.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback