USD/JPY: minor recovery in Tokyo vrs heavy market

Currently, USD/JPY is trading at 112.77, down -0.33% on the day, having posted a daily high at 113.17 and low at 112.53.

Wall Street in the red on Trump policy uncertainties

USD/JPY has dropped off in recent sessions with the dollar falling out of favour and the yen picking up safe haven demand with stocks falling and US yields fragile as the reflation trade is unwound. At the same time, the Fed is expected to hike rates this year although it is all data dependant and the US economy cannot simply thrive as if by magic overnight and indeed there are a great number of uncertainties over Trump's presidency in respect to the speculation on his fiscal policies for 2017 and the US economy. The dollar is falling under scrutiny as a result and just overnight, some jawboning of the currency from U.S. Treasury Mnuchin: "Excessively strong" USD may be negative in the short term.

USD/JPY levels

Spot is presently trading at 112.78, and next resistance can be seen at 112.81 (Daily Classic S3), 112.83 (Weekly Classic S1), 113.15 (Daily Open), 113.17 (Daily High) and 113.28 (Hourly 20 EMA). Support below can be found at 112.76 (Yesterday's Low), 112.65 (Monthly Low), 112.65 (Weekly Low), 112.65 (YTD Low) and 112.53 (Daily Low).