Currently, USD/JPY is trading at 114.97, up 0.15% on the day, having posted a daily high at 115.12 and low at 114.78.
USD/JPY is consolidating the 2017 reversal from the 112.50 while markets are awaiting Trump's inauguration and speech. Meanwhile, the dollar has been in recovery overnight and US yields have found some support on stronger US data along with the Philly Fed's business survey that affirmed the broad strength in yesterday's Fed's Beige Book.
Interest rates:
Analysts at Westpac noted that the US data added to the already rising profile for US yield: 10yr rose +5bps to 2.47%. Thus, the Central bank theme that has come back into play remains so and is benefiting the dollar going forward as we await Trump to bump up the US economy and ultimately drive capital into the US given, and as Harry Dent mentioned in the below panel, the US economy is the best house in a bad neighbourhood."
USD/JPY levels
Current price is 114.97, with resistance ahead at 115.12 (Daily High), 115.30 (Weekly Classic PP), 115.34 (Daily 20 SMA), 115.58 (Daily Classic R2) and 115.63 (Yesterday's High). Next support to the downside can be found at 114.94 (Daily Classic R1), 114.84 (Hourly 20 EMA), 114.80 (Daily Open), 114.80 (Weekly High) and 114.78 (Daily Low).
What is the Trump trade?
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