Risk aversion is back in expectation of new trade negotiations between the United States and China

• The USD / JPY is trading around 110.50 before the start of the European session on Tuesday.
• The latest news signaling new trade negotiations between the United States and China has renewed risk aversion.
• 110.65 continue to limit the immediate rise of the pair, 110.25 playing the role of adjacent support.

USD / JPY was little changed around 110.50 on Tuesday. The pair has seen a pullback since the start of the Asian session as traders rushed to risk their security before the new trade negotiations between the two countries after the closure of the US market Monday. Han Zheng, vice premier of China, stressed the need to reduce taxes to reduce the pressure on the economy.

US markets were closed on Monday due to the president's holiday and investors were kept informed of the changing trade situation, with US delegates returning from Beijing on Friday night. Earlier Tuesday, Reuters announced that White House press secretary Sarah Sanders had announced a new US-China meeting on February 19, chaired by US Trade Representative Lighthizer. Mnuchin, Ross Trade Secretary, Kudlow Economic Advisor to the White House and Navarro, White House Trade Advisor.

The report also said the trade talks would focus on "the structural changes needed in China that affect trade", as well as on China's commitment to "buy" a substantial amount of goods and services from China. United States".

In another report from Reuters, it was mentioned that Chinese Vice Premier Liu He will be in Washington on February 21 and 22 to continue the trade talks.

The news of internal negotiations between White House decision-makers is expected to weigh heavily on ongoing Sino-US trade negotiations, mainly because of the US's harsh demands, which in turn triggered risk aversion.

In addition, the Chinese daily People's Daily reported on Deputy Prime Minister Han Zheng's latest comments on Tuesday, saying that Beijing should reduce corporate taxes and royalties as an important part of its tax policy.

Investors can now focus on the evolution of trade in order to determine the business climate and the risk sentiment of the return of US traders to the markets after a long weekend.

USD / JPY Technical Analysis

Not to exceed 110.65 could lead to a USD / JPY exchange rate of 110.25 and then 110.00, while 109.60 could subsequently appear on the sellers' radar.

On the upside, a clearance of 110.65, 111.00 and 111.15 can entertain buyers before they please with a simple 200-day moving average of 111.30.