USD/JPY: large early offers taking out 114 handle to the downside

USD/JPY has dumped in Asia before the Tokyo open, falling from 114.49 to a low of 113.74 so far.

USD/JPY is currently testing the handle to the downside after a quick recovery fro the lows, but the bears remain in control while the dollar remains out of short term favour on the back of Trump's failings in respect to deliver to the market's something concrete in respect to economic reforms in his inauguration speech that was ambiguous to say the least when it came to expectations from a Trump presidency. 

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USD/JPY levels

In respect to any bullish analyses, Marc Chandler, Global Head of Currency Strategy and team noted that the US dollar recorded an outside up day against the yen on January 18, adding, "There was follow through buying that lifted the greenback to about JPY115.60. This corresponds to a 50% retracement of the dollar's slide since retesting the December 15 high near JPY118.60 on January 3.  The 61.8% retracement is near JPY116.30. The Slow Stochastics and MACDs are poised to turn higher in the coming days."

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