• USD/CNY strengthened on Friday as risk of U.S. trade tariffs and widening yield differential between the U.S. and China weighed on the Yuan .
• The gap between China's benchmark 10-year treasury yield and the U.S. 10-year yield is at its widest in 24 years, driving demand for dollar-denominated assets and putting pressure on the yuan..
• U.S. President-elect Donald Trump's tariff stance against China is a significant issue for the next year, as many experts fear it may cause more yuan devaluation.
• At GMT 09.52,the dollar was up 0.02% at 7.298 against Chinese Yuan .
• Immediate resistance is located at 7.302(23.6%fib), any close above will push the pair towards 7.313(Higher BB)
• Support is seen at 7.284(Dec 19th low) and break below could take the pair towards 7.262(38.2%fib).
Recommendation: Good to buy around 7.295 with stop loss of 7.240 and target price of 7.340
