USD/JPY jumps up from 105.20 to a high of 105.96
The pair is currently running into resistance around the 61.8 retracement level @ 105.86 and is settling around 105.70-80 levels at the moment.
Trump’s remarks is helping to feed optimism back into markets as he says that China has called him up to say that “they want to make a trade deal”.
The big question now is will China’s story corroborate with what Trump is saying?
I reckon if we do see some supportive statements, it will lend risk assets a helping hand in finding another boost higher. However, I would stay cautious as this feels too good to be true at the moment.
There are still plenty of red lines in the US-China trade rhetoric and it remains to be seen if both sides can reach a compromise on those issues.
For now, markets are feeling much more cheerful than the start of today with US futures in positive territory now. For USD/JPY, there are offers lying near 106.00 before near-term resistance is seen around 106.24 around the key hourly moving averages.