USD/JPY: scoring fresh highs to 113.41 with equities bid in Tokyo

Currently, USD/JPY is trading at 113.34, up 0.19% on the day, having posted a daily high at 113.41 and low at 113.09.

USD/JPY has sprung into life in Asia, making tracks from out of the consolidation period between a couple of pips below the 113 handle and 113.16  the Us session high. The price has since climbed to aforementioned highs breaking the 4hr 20 sma at 113.24. This move comes as Asian equities have opened mostly higher while Wall Street was closed overnight. Markets are now bracing themselves for the RBA minutes. 

In respect to market positioning and latest CFTC report, analysts at Rabobank noted that yen shorts have now dropped for seven consecutive weeks as postUS election carry trades continue to reverse. Concerns regarding a drop in world trade, tensions in the S.China Sea and the potential for tapering pressures at the BoJ are all supportive JPY factors."

USD/JPY levels

On the wide levels, the USD/JPY remains between key breakout levels as 115.62, 19th January high, and 111.50 and the 200 day smoothed sma. The 16-month resistance line is at 117.99 while the base of the cloud is located at 109.92.  "Only below 111.59 would introduce scope to the base of the cloud, which lies at 109.92 and, if seen, we look for this to hold (this is also the 50% retracement of the move up from November)," explained analysts at Commerzbank, adding, "However this is not our favoured view - we also note that the recent move lower continues to indicate that this is the end of the corrective move."