USD/JPY: steady in 10 pip sell-ff in Tokyo after very bid US stocks

Ross J Burland FXStreet

Currently, USD/JPY is trading at 113.55, down -0.05% on the day, having posted a daily high at 113.75 and low at 113.53.

Wall Street closing at all time highs again

USD/JPY is steady in Tokyo in a quiet session following the overnight action where currencies were whippy and markets going at full steam ahead. The stocks met new record highs despite poor economic data in the US PMI's compared to the outstanding EZ PMI's. The yen was slightly lower between a range of 113.40-113.80. We now turn heads to the Fed minutes as the next main catalyst.

"US: FOMC Minutes. The release should offer some guidance on the prospects of a March hike. Key points of discussion centre on the labour market. This includes the outlook on the undershooting of the natural unemployment rate creating inflationary pressures, the return of people to the labour force as the economy strengthens, and measures of labour underutilisation."

USD/JPY levels

USD/JPY near term outlook is positive while the bulls continue to try and maintain its uptrend at 112.97. Analysts at Commerzbank explained that USD/JPY’s failure at the 55 day ma at 114.98 has been decisive and see the market selloff to its 112.97 uptrend. "We view the recent low at 111.59 as an interim low. A close above the 115.62 19th January high is needed to reintroduce scope to key short term resistance offered by the 16-month resistance line at 117.97."

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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