USD/JPY falls to a low of 109.64, its lowest level since 7 February
Price is now threatening a break of the key daily support @ 109.71, the 25 March low. As mentioned earlier, if this level gives way, it will open up a slippery slope in the pair towards the February low of 108.50 – should US-China trade headlines support a move lower that is.
Right now, we have a bit of a preview on what to expect as China says that it is fully prepared to defend its interests in a trade war with the US. But as mentioned here, the fact that they mention that they aren’t happy about IP theft accusation basically should mean that China won’t be offering the US concessions on the matter.
That certainly isn’t a good sign as we await trade talks to begin in Washington later today and tomorrow as well.
The move lower in USD/JPY was brought about by a further dip in Treasury yields, as 10-year yields fall by 3.6 bps to 2.447% now. Meanwhile, US equity futures are also slumping further as E-minis post a decline of over 0.8% now.