Japanese Yen Climbs Amid Risk Aversion On Mounting Trade Worries
May 08 2019 - 11:08PM
RTTF2
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.
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