Monday in the forex markets: what’s ahead?

The USD/JPY pair reversed an early Asian session dip drop to the 107.00 neighbourhood and rallied to over one-week tops in the last hour, albeit quickly retreated few pips thereafter.   The pair built on this week’s goodish bounce from the weekly bearish gap opening and gained some follow-through traction on Wednesday in reaction to reports that China is still open to agreeing on a partial trade deal with the US despite the recent development.The pair did witness some pullback earlier this Thursday amid nervousness ahead of the high-level US-China trade negotiations. The dip was quickly bought into on the back of growing trade optimism, which continued weighing on the Japanese Yen’s perceive safe-haven status.   Meanwhile, the latest leg of a sudden pick up over the past hour or so was triggered by a Bloomberg report that the US is considering entering into a currency agreement with China as a part of a partial trade deal, though a subdued US Dollar price action kept a lid on any strong follow-through.   Despite the incoming positive trade-related headlines and Wednesday’s less dovish FOMC meeting minutes, the Greenback struggled to gain any meaningful traction and remained on the defensive in the wake of a weaker tone surrounding the US Treasury bond yields.   A subdued USD price action seemed to be one of the key factors capping any strong gains for the major ahead of Thursday’s important release of the latest US consumer inflation figures and the resumption of the US-China trade talks.Forex Crunch is a site all about the foreign exchange market, which consists of news, opinions, daily and weekly forex analysis, technical analysis, tutorials, basics of the forex market, forex software posts, insights about the forex industry and whatever is related to Forex.Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader’s level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information. .