USD/JPY: consolidates the bid in Tokyo, bullish bias

Currently, USD/JPY is trading at 117.87, up 0.04% on the day, having posted a daily high at 117.95 and low at 117.71.

USD/JPY is consolidated in a slow Asia today after risk-on markets took the Dow to its closest proximity to the 20,000 mark yet, fuelled by speculation of Trump's proposed policies will be positive for stocks in general. The yen is thus having a hard time of late and the dollar comes out top, underpinned by the recent hawkishness from the FOMC.

The main take away from the BoJ was that Governor Kuroda stated that the policy switch to yield curve control is working well as it has resulted in a steeper curve which is now described as "appropriate", as explained by analysts at Bank of Tokyo Mitsubishi:

"He acknowledged that monetary policy differences between the BoJ and Fed could affect the yen. However, he pushed back against suggestions that the yen is now too weak noting that the current yen level is not surprising and is only similar to the one from around February. BoJ Governor Kuroda's comment that the yen is not "excessively weak" will likely reinforce current bearish sentiment towards the yen by signalling they have a tolerance for further weakness."

US Dollar Index off highs, still headed toward highest close in 14 years

USD/JPY levels

Spot is presently trading at 117.87, and next resistance can be seen at 117.89 (Daily Classic R1), 117.95 (Daily High), 118.15 (Monthly High), 118.15 (Weekly High) and 118.26 (Yesterday's High). Support below can be found at 117.82 (Daily Open), 117.80 (Hourly 20 EMA), 117.71 (Daily Low), 117.66 (Hourly 100 SMA) and 117.22 (Daily Classic PP).