USD/JPY steady in Tokyo, consolidating 100 pip Trump fuelled drop

Currently, USD/JPY is trading at 112.90, up 0.22% on the day, having posted a daily high at 113.02 and low at 112.57.

Wall Street falls back as reflation trades take a hit on Trump

USD/JPY is consolidated in Tokyo after a day of losses overnight on the back of US interest rates falling with the 10yr slipping 5bp to 2.347% on the back of the Trump stimulus and tax reform hopes diminishing by the day, today on the back of Trump's recent comments. The US dollar was also sold off on Trump saying that it is too strong in comparison to the Yuan in particular. USD/JPY dropped from the mid way point of the 113 handle to score lows 100 pips lower overnight. 

For the day ahead, attention will be on US headline CPI that has continued to firm as energy deflation drops out. Analysts at Westpac explained that core inflation is to remain a little above 2%yr, where it has been for many months. Also, they note, "Chair Yellen to speak in San Francisco. Detail on potential impact of Trump's policies will be watched out for. Kashkari also speaking."

USD/JPY levels

Spot is presently trading at 112.90, and next resistance can be seen at 113.02 (Daily High), 113.04 (Weekly Classic S1), 113.10 (Hourly 20 EMA), 113.20 (Daily Classic S2) and 113.67 (Daily Classic S1). Next support to the downside can be found at 112.78 (Daily Classic S3), 112.66 (Daily Open), 112.63 (Yesterday's Low), 112.57 (Daily Low) and 111.50 (Weekly Classic S2).