Currently, USD/JPY is trading at 112.41, down -0.07% on the day, having posted a daily high at 112.54 and low at 112.40.
- FOMC Minutes: Many Fed officials saw another rate hike warranted this year
- Wall Street edges up to record highs fueled by retailers and energy
- Update: Trump vows to cut corporate tax to 20%
USD/JPY changed hands in a familiar territory, between 112.00/50 with the 113 handle disappearing over the horizon after a number of sessions failing to break the bears down through the figure and close there.
The greenback has lost some traction and the yen can benefit from ongoing geopolitical uncertainty. We might not expect to see a break out wither way ahead of the massive expiries from 113 to 112 on Thursday while markets get set for the data on Friday in retails sale and CPI for the US.
Meanwhile, it seems that Abe will win with local media, such as Asahi and Nikkei, report that the ruling coalition (LDP and Komeito) has been gaining momentum.
Valeria Bednarik, chief analyst at FXstreet explained that the 4 hours chart for the pair presents a neutral stance:
'Technical indicators lack directional strength around their mid-lines, whilst the price is a few pips below its 100 SMA, but meeting buying interest on approaches to the 112.00 psychological threshold, also the 23.6% retracement of the September rally. Below this last, the pair will turn short-term bearish, with scope then to extend its decline towards the 111.60 price zone, en route to 111.20, this last a more likely bearish target for the upcoming sessions," Valeria explained.
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