USD/JPY struggling below 115.00 mark as investors await for Trump inauguration

The Japanese Yen outperformed its American counterpart, with the USD/JPY pair trading with bearish bias below 115.00 psychological mark. 

Currently trading around 114.70-75 region, the greenback remained broadly on the back foot as investors refrained from placing any major bets ahead of the key event risk, Donald Trump’s inaugural speech later during the day. 

During early Asian session, the major gained some traction and touched a session peak level of 115.15 but once again lost the upside momentum as there was a little less hawkish signal from the Fed Chair Janet Yellen’s speech in wake of uncertainty over the impact of fiscal policies by the incoming Trump administration.

Of late the key US Dollar Index has been struggling for fresh impetus and hence, today’s Trump inauguration would be looked upon for a fresh leg of directional move for the greenback.

Technical levels to watch

Immediate downside support is pegged at 114.50 level, which is closely followed by 50-day SMA support near 114.25 region. A convincing break back below 50-day SMA is likely to accelerate the slide immediately towards 113.65-60 intermediate support ahead of 113.00 round figure mark.

On the upside, momentum back above 115.00 mark is likely to confront resistance near 115.60 region above which the pair seems all set to head towards reclaiming 116.00 handle.