The greenback keeps the bearish note vs. its Japanese counterpart on Monday, taking USD/JPY to the mid-112.00s ahead of the NA opening.
USD/JPY focus on US yields, Trump-Abe meeting
The Japanese safe haven is trading with gains for the second consecutive session so far, although a sustainable break below the 112.00 handle still remains elusive.
JPY has recovered part of the ground lost in recent sessions, as scepticism over the ability of the BoJ to keep the 10-year benchmark around 0% has picked up pace amongst investors, all against the broader backdrop of rising doubts around the central bank’s loose monetary policy.
Adding to JPY potential upside, US President D.Trump will meet PM S.Abe on Friday. Recall that in recent comments Trump said the Japanese government was deliberately devaluating its currency.
JPY has been also underpinned by speculative positioning, with net shorts retreating to the lowest level since early December during the week ended on January 31 and according to the latest CFTC report.
USD/JPY levels to consider
As of writing the pair is retreating 0.25% at 112.37 and a break below 112.04 (low Jan.31) would aim for 111.98 (38.2% Fibo of the November-December 2015 up move) and then 111.32 (low Nov.28). On the upside, the initial hurdle sits at 113.44 (spike Feb.3) followed by 113.97 (high Jan.31) and finally 114.96 (55-day sma).
You may be interested
Schnorr Signatures – Another step after SegWitBrian Evans - Jan 20, 2018
Signature aggregation is a very hot topic for most Bitcoin Developers, as they are trying to implement a way to help the network save resources, and improve…
Blockchain is making way for all companiesBrian Evans - Jan 20, 2018
Everyone has had a genius business idea at some point or another. Most ideas come from looking around and identifying ways life could be made better. That’s…
Drone Saves Two Children from Drowning in AustraliaBrian Evans - Jan 20, 2018
Drone technology has always been intriguing to industry experts and enthusiasts alike. In fact, it seems the idea of using drones in the real world may finally…