USD/JPY: dropping below 114 handle in risk-off mode before PM May's Brexit speech

Ross J Burland FXStreet

Currently, USD/JPY is trading at 113.88, down -0.19% on the day, having posted a daily high at 114.25 and low at 113.83.

USD/JPY opened in Tokyo with a decisive offer following on from the better offered feel at the start of this week while consolidating the initial supply that started when markets returned for 2017.

Brexit fears mounting up on more Telegraph news for May's Brexit 12 point plan delivery speech

There is an air of uncertainty again that has been sparked by the weekend's news and today's reported in the Telegraph that PM May's keynote speech will include a 12 point plan that will leave no room for a soft exit. This, coupled with the reversal of the Trump trade offers the Yen support ahead of Trump's inauguration on Friday.

Meanwhile, US markets were closed overnight but the US premium has been diminishing of late with a rise in yields and the Fed's fund rate, but for the day ahead in the US session we only have NY Fed's Dudley who will speak on consumer behaviour and Williams is also speaking. The key event remains with Wednesday's CPI and Friday's inauguration.

USD/JPY levels

Spot is presently trading at 113.92, and next resistance can be seen at 114.01 (Daily Classic S1), 114.14 (Monthly Low), 114.14 (Weekly Low), 114.14 (Daily Open) and 114.19 (Hourly 20 EMA). Next support to the downside can be found at 113.83 (Daily Low), 113.62 (Yesterday's Low), 113.44 (Daily Classic S2), 113.04 (Weekly Classic S1) and 112.72 (Daily Classic S3).

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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