USD/JPY bulls taking charge in Tokyo open, testing key resistance
|- USD/JPY: bulls attempting key upsdie levels again.
- USD/JPY: risk on and a firmer dollar all in play.
USD/JPY has been ticking up in the Tokyo open as the greenback continues to march on, with investors enthused by the potential outcome of the tax cuts for US corporations and what that will mean of repatriations of dollars as well. Currently, USD/JPY is trading at 112.36, up 0.14% on the day, having posted a daily high at 112.42 and low at 112.20.
Japan manufacturers' mood steady in positive sign for BOJ tankan: Reuters Tankan
Risk on markets in play
Indeed, the risk on continues and was solid overnight, with the Bond markets generally stronger, with the yield on the US 10-year note falling to 2.32%. Bund yields were 2.5bps lower. Oil also weakened, with WTI off 2.4%. Gold being a touch lower as well (-0.1%), all weighing on the yen.
USD/JPY levels
Overnight, the rebound attempt faltered at Tuesday's 112.38 low, but the bulls are having another go on Asian desks today and will leave the downside in check for the time being, where otherwise, a sub-111.97, ( daily Tenkan at 111.97), close would target 110.85/88 Cloud base & Nov lows. Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that, technically, the 4 hours chart for the pair shows that the risk remains towards the downside, as despite it has managed to advance modestly above an anyway bearish 100 SMA, technical indicators hold within bearish territory, with very limited upward strength. "The pair would need to accelerate through 112.60, the immediate resistance, to shrug off the negative stance, yet renewed selling interest below the 112.00 threshold will likely result in a slide towards the 111.20 region, a strong static support."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.