USD/JPY bulls seek break of 110.20 resistance

• USD/JPY holds in positive territory threatening a break of 110.20.
• Global trade is back on track following the latest developments in the USMCA and phase-one trade deal. 
• USD/JPY is currently trading at 110.16 meeting the top of the rising channel around 110.20 as US stock markets maintain a lukewarm bid and US data turns positive.

• Wall Street close: US benchmarks make fresh record highs

USD/JPY has been turning head of late, trading ina robust bullish trend within the rising channel and bull run which formed in late August down in the 104s. The price has been elevated considering the US and China's phase-one agreement and prospects for global growth. 

For the US dollar, it was firmer in the US session following a turn in US data, bucking the negative trend of late whereby Retail Sales rose 0.3% MoM (control group rose 0.5%, est. 0.4%). this was in line with estimates but nevertheless encouraging. The US Jan Philly Fed index at 17.0 also encouraged a bid in the US dollar, beating expectations (est. 3.7, prior 2.4) to retest mid-2019 highs. The data and showed solid gains in employment and new orders components. 

Another positive factor for risk sentiment came when the US Senate approved the USCMA trade agreement which now awaits Canada to agree on it and for Trump’s imminent signing.

Chinese GDP on the cards

Looking ahead for today, we have China's Gross Domestic Product for Q4 whereby annual growth is expected to print at 6.0%YoY, in line with the Q3 result. 

"This will leave year-average growth at the low-end of authorities’ 6.0-6.5% target for 2019. "The detail on investment and consumption will be key and monthly data for December will provide additional context. Of the December data, we will be most interested in industrial production, with consensus 5.9%yr vs 6.2%yr in November," analysts at Westpac explained. 

USD/JPY levels

• USD/JPY Forecast: Economic health lifts the dollar