• USD/ CNY slipped to hit 1-1/2 month low on Friday as Chinese Yuan was buoyed following U.S. President Donald Trump's indication that tariffs on China could be avoided.
• Trump's comments come just days before the Federal Reserve's first policy meeting under his administration.
• His tariff threats have been one of the key factors weighing on Chinese assets and market sentiment over the past few months.
•Chinese financial markets will be closed for the week-long Lunar New Year holiday from Jan. 28.
• Immediate resistance is located at 7.277(38.2%fib), any close above will push the pair towards 7.340 (23.6%fib).
• Support is seen at 7.224 (50%fib) and break below could take the pair towards 7.172 (61.8%fib).
Recommendation: Good to sell around 7.240 with stop loss of 7.300 and target price of 7.200
