FX snapshot: USDJPY caught in the cross flow crossfire

USDJPY steadies after 111.00 break (currently 110.55)

USDJPY finds support around 110.50 after confirming the break under 111.00
General USD weakness offset by yen selling in the crosses
BOJ Kuroda’s overnight bullish comments on economy saw yen buying which was then offset by maintaining that QQE and YCC will remain in place for as long a necessary
110.52/90 the range through Europe and into the US day, 110.90 main intraday resistance ahead of 111.00, and confirming the break
55 MMA at 110.62 could be important on a month-end close below. Have not held below since 2012
Friday’s late bounce to 111.20 marks the next resistance if 111.00 reclaimed
Next support under 110.50 is around old S&R at 110.20 and the 61.8 fib of Sep 2017 swing up at 110.14. Stops in place through 110.15.
Bids and strong barrier interest down at 110.00, stops building below. 100 WMA 109.92
Break of 110.00 brings lower end of 2017 range in play around 108’s
Fresh life breathed into markets as vols rise. 1m ATM at 7.38% from sub-6.00% last week
No help on hand from blank US data slate. Only US Empire state data to give a first look at January manufacturing tomorrow
Japan gets Dec 2017 PPI data tonight. 0.4% exp vs 0.4% prior m/m. 3.2% exp vs 3.5% prior y/y

USDJPY daily chart

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