The yen’s safe-haven status if further underpinned by the lingering US-China trade tensions. The trade spat escalated further on Friday after China said that it is no longer interested in resuming trade talks with the US under the current threat to escalate tariffs.
The reports intensified concerns over a full-blown trade war between the world’s two largest economies. This in turn provided another lift to the Japanese currency which could go higher if the relations between Washington and Beijing continue to deteriorate. Technically, the pair needs to hold above the 109.30 area so that not to threaten the 109.00 level in the short term.