USD/JPY extends climb as risk assets get a bit of a lift on the day

Technical Analysis

USD/JPY hits a fresh six-week high of 107.78


The tweet by the Global Times editor here is giving risk assets a bit of a springboard to move higher today with US futures now up by 0.3% while the yen is extending losses on the session, notably USD/JPY hitting fresh six-week highs.

On the face of it, the headline suggests that it will help ease burden on companies affected by the trade dispute between the US and China but it does little to change the overall sentiment that both sides are still not close to striking a deal just yet in my view.

But also, just be reminded that this is just a tweet. Unless it is backed up by Chinese officials in due time, this amounts to nothing in the end.

In any case, we’ve seen this story play out one too many times. There’s plenty of positive talk and hopeful optimism going into proposed trade talks/negotiations, only for it to all fall apart when both sides can’t compromise on structural issues.

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