{"id":160022,"date":"2019-11-18T11:45:20","date_gmt":"2019-11-18T16:45:20","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=160022"},"modified":"2019-11-18T10:17:30","modified_gmt":"2019-11-18T15:17:30","slug":"wti-jpy-crude-japanese-yen-analysis-getting-ready-for-us-china-trade-talks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/11\/wti-jpy-crude-japanese-yen-analysis-getting-ready-for-us-china-trade-talks\/","title":{"rendered":"WTI\/JPY Crude\/Japanese Yen Analysis: Getting Ready for US-China Trade Talks"},"content":{"rendered":"
November 18, 2019<\/div>
\r\n<\/div><\/div>

By IFCMarkets<\/a><\/strong><\/p>\n

Getting Ready for US-China Trade Talks<\/strong><\/p>\n

In this review, we suggest to consider the personal composite instrument (PCI) &WTI\/JPY. It reflects the price dynamics of the portfolio of futures on WTI oil against the Japanese yen. Will the WTI\/JPY<\/a> rise??<\/p>\n

Such dynamics means the weakening of the yen and strengthening of the oil. The dynamics of that PCI may depend on the success of US-Chinese trade talks. The Japanese yen, along with gold and the Swiss franc, is considered by investors as a \u201csafe asset\u201d. The demand of the Japanese yen may decline if the first phase of the trade agreement between the USA and China will be signed. At the same time, the demand of the oil may increase due to a decrease in risks for the global economy. During the last week, the economic adviser of the White House Larry Kudlow declared that there is a progress in trade talks between USA and China. The US Commerce Secretary Wilbur Ross expressed similar opinion. According to the International Energy Agency (IEA), the main increase of the oil production (at least 0.5 million barrels per day) should be executed by the countries who are non-OPEC members, such as USA, Brazil, Norway and Guyana by the next year. Meanwhile, oil production in the United States already reached a historic maximum at 13 million barrels per day (bwd). It is hard to state whether it will continue to grow. At the same time, the IEA expects an increase in the global oil demand by 6.6 million bwd in 2025. It may become the long-term factor in the stability of oil prices.<\/p>\n

\"WTI\/JPY\"<\/p>\n

On the daily timeframe, WTI\/JPY: D1<\/b> approached the upper boundary of the neutral trend, which aligns with the 200-day moving average line. Before opening a buy position, it must be broken up. Various technical analysis indicators have generated signals to increase. Further growth of quotations is possible in case of successful trade negotiations between the USA and China.<\/p>\n