The USDJPY is surging ahead on the latest reports from Fox News editor Edward Lawrence. Lawrence is reporting that China has offered to remove the requirement for forced joint ventures in financial services at the ongoing US-China trade talks.
This report clarifies an earlier report which had erroneously stated that China had offered to remove the requirement completely. So for now, this offer only extends to foreign companies operating in financial services.
So far, only positive headlines have been emerging from the US-China trade talks, with US President Donald Trump stating yesterday that the talks were going very well. Trump is scheduled to meet with Chinese Vice Premier Liu later today.
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The risk-on market sentiment continues to gain momentum. The resurgent USDJPY is now firmly pushing against the resistane at 108.50 (50% Fibonacci level), which is where the price had previously formed two tops on September 19 and October 1.
A break above this price level would negate the potential double top that has been in formation for a number of weeks now. This move would make the August 1 high of 109.36 (61.8% Fibonacci level) the new upside target.
On the flip side, a switch back to risk-off sentiment could see a retest of the 38.2% Fibonacci level of 107.50.
The situation continues to remain fluid as more headlines emerge from the US-China trade talks.