USD/JPY advances to mid-110s on renewed trade optimism

• US Dollar Index rises to 97.20 area ahead of data.
• Reports of the U.S. and China reaching consensus on key issues boost the sentiment.
• US 10-year T-bond yield moves into the positive territory.

after losing 50 pips on Thursday, the USD/JPY extended its slide during the European trading hours and touched a 4-day low of 110.25 before gaining traction ahead of the Wall Street opening bell. As of writing, the pair was unchanged on the day at 110.52.

Chinese news agency Xinhua today reported that Chinese and U.S. negotiators have reached consensus on some key issues during trade talks. Similarly, White House press secretary Sanders told reporters that the U.S. and China made progress in talks and added that discussion would continue next week in Washington while explaining that the U.S. was focused on issues regarding technology transfer and currency manipulation.

Boosted by these headlines, the S&P 500 Futures turned positive on the day to suggest that Wall Street is likely to open higher. Additionally, the 10-year T-bond yield retraced its daily fall to support the pair's recent rebound.

Later in the session, import/export price index, industrial production, and the UoM Consumer Sentiment Survey from the U.S. will be looked upon for fresh impetus. Ahead of these data, the US Dollar Index is up 0.28% on the day at 97.30.

Key technical levels