USD/JPY: a little pop in Tokyo in low volume trade, DXY in positive correction

Ross J Burland FXStreet

USD/JPY has taken on the previous hourly resistance and did so just ahead of the Tokyo open with comments from Japanese officials beating the familiar sound on the same 25 inflation drum. Currently, USD/JPY is trading at 106.72, up 0.12% on the day, having posted a daily high at 106.76 and low at 106.56.

Forex today: dollar gets a lift in thin holiday trade
Funda, political and European market recap: a quiet start with some political sound bites

The move wasn't much, but relatively, considering how quiet the markets had been overnight with the US out celebrating President's Day and Canada observing Family Day while China is out until Thursday, the move was the biggest we have seen since the round turn in the NY morning between 106.72 and 106.49. The current move was from 106.63 and travelled to 106.75 on the hourly stick. Comments came as follows:

Japan Finance Minister Aso: achieving 2% inflation proves Japan has escaped deflation.
Japan Finance Minister Aso: expect BoJ to continue working with govt to achieve 2 pct inflation target.
JapanFinance Minister Motegi: Japan soon to exit deflationary situation.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the short-term picture is neutral for the pair, with the risk still skewed to the downside: "In the 4 hours chart, it remains well below bearish moving averages, while the Momentum indicator heads modestly higher around its 100 level, but the RSI keeps consolidating within negative territory, currently around 44."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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