Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

USD/JPY at two-week high as US, China reach deal

The dollar-yen is proving to be resurgent as US and China announce tariff roll backs.

The USD/JPY is picking up, following positive US-China trade developments.

On Monday, December 16th, the major opened at ¥109.336, 0.05% higher than last week’s closing price of ¥109.281.

A day earlier on, December 15th, China had agreed to suspend planned retaliatory tariffs on certain US agricultural goods and automobiles as part of its upholding of the phase one trade deal.

This is the highest level in two weeks, after a five-month high of ¥109.611 recorded last month.

The price is set to rise further, according to IG Chief Market Analyst Chris Beauchamp. He wrote that price level is back in the ¥109.55 region that has marked resistance for months, but it looks like further gains toward ¥110.35 can be expected.

Don’t throw caution into the wind, just yet

Despite this turning point, ANZ Bank analysts warned in a Monday morning note that the phase one deal does not completely rule out the possibility of unresolved trade issues resurfacing in the coming year.

They wrote: ‘The US has agreed to halve the tariffs on US$120 billion of Chinese goods (from 15% to 7.5%) but will retain a 25% on US$250 billion of Chinese imports. There have been no indications from the US that there will be a further rollback in tariffs in the future but the December 15th tariffs would not take effect.

‘In exchange, China has agreed to purchase an additional US$16 billion in goods from the US over the next two years, something already agreed in previous trade discussions.’

Meanwhile, Commonwealth Securities senior economist Ryan Felsman noted there were certainly ‘expectations perhaps that the rollback would be more significant than just 50%’, adding that most investors are still awaiting further details.

Learn how to trade Forex with an IG demo account now

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.8 pips on EUR/USD
  • Analyze market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on the most popular forex markets


Prices above are subject to our website terms and agreements. Prices are indicative only

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading forex provider.

Stay on top of upcoming market-moving events with our customisable economic calendar.