USD/JPY: bulls eye 112 handle in minor reocovery

Currently, USD/JPY is trading at 111.99, down -0.66% on the day, having posted a daily high at 112.84 and low at 111.78.

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USD/JPY is stabilising the offers from 112.80 down to test the bull's commitments at the 112.00 level. There was some slippage to the aforementioned lows where demand came in and drove the price back to the handle as we await the main event later today that comes with trump's address to Congress. 

The US data has otherwise been mixed with GDP disappointing but consumer confidence strong. The data yesterday was also sufficient enough for the Atlanta Fed ti raise its GDP forecasts for Q1 by 0.4%.  

US flash Q4 GDP at 1.9%

For today, the US stock market is struggling currently at time of writing with the benchmarks selling-off. "The Dow Jones Industrials have rallied for a dozen consecutive sessions, and the S&P 500 is off only three sessions this month, coming into today," explained analysts at BBH, adding, "The speculative long dollar position has been reduced in the futures market, but it remains net short euros, sterling and yen. However, speculators are also net long the dollar-bloc currencies."

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USD/JPY levels

Analysts at Commerzbank explained that between 111.59/114.83 the market is side lined. "A close above the 115.62 19th January high is needed to reintroduce scope to the key short-term resistance offered by the 16-month resistance line at 117.91. Only below 111.59 would introduce scope to Fibonacci support at 109.92 and, if seen, the 200 day ma at 107.69."