USD/JPY supported on bearish attemps in Tokyo, dollar remains firm

Ross J Burland FXStreet

Currently, USD/JPY is trading at 113.79, up 0.02% on the day, having posted a daily high at 114.00 and low at 113.76.

USD/JPY has been better offered in the Tokyo open, despite the rally where the greenback was catching a bid on the back of Trump's action in the White House earlier this week.

Trump kick starting a rally in the dollar on his make America great again projects sign off's

However, the bigger news for Asia is the Australian CPI that has also fuelled a bid in the greenback that could bring in some support to USD/JPY. Australia's Q4 CPI: All figures miss expectations

Meanwhile, and in the wider picture, analysts at Rabobank explained that the future growth of world trade will depend for a large part on structural factors as well as on political developments, highly uncertain events to say the least and therefore, a swift return to pre-crisis growth rates does not seem to be on the cards - this could be seen as positive to the dollar should the US continue to lead the way, or as Harry Dent puts it, the best house n a bad neighborhood' so long as Trump delivers and it might be wise to be cautious to be too bearish on the dollar especially with the extent of the move seen already in 2017.

Don't be too bearish on the dollar - ANZ

USD/JPY levels

Current price is 113.79, with resistance ahead at 113.91 (Yesterday's High), 114.00 (Daily High), 114.01 (Hourly 200 SMA), 114.07 (Hourly 100 SMA) and 114.14 (Daily Classic R1). Next support to the downside can be found at 113.77 (Daily Open), 113.76 (Daily Low), 113.52 (Hourly 20 EMA), 113.45 (Daily Classic PP) and 112.83 (Weekly Classic S1).

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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