The overall hope that the US and China will finally conclude a trade deal keeps riskier assets afloat and caps the safe-haven yen demand. On the other hand, lack of details on progress in negotiations deprives investors of enthusiasm.
On the data front, Japan’s January headline CPI rose 0.2% against 0.3% in the previous month. The national CPI ex-food came in at 0.8%, in line with market consensus versus 0.7% earlier. Despite the consumer price growth accelerated, the index is still far from Bank of Japan’s 2% target, which highlights the fragility of the recovery process.
Technically, the USDJPY pair struggles to get back above the 111.00 resistance. A break of which could open the way to the 200- and 100-DMAs at 111.30 and 111.50 respectively. A breakthrough in the near term is possible if some obviously positive details and comments come from Washington, where the trade negotiations continue.