USD/JPY down smalls around 114.00
- US yields retreats from earlier tops near 2.38%.
- Spot finds resistance around 114.30, weekly tops (Wednesday).
- Attention on Trump’s decision on Fed Chief.
The greenback is abandoned the area of daily highs vs. its Japanese currency, although USD/JPY is managing well to keep the trade at/above the critical 114.00 barrier.
USD/JPY focus on Trump, tax reform
After clinching fresh weekly highs in the 114.30 area on Wednesday, the pair met some downside pressure so far well contained around the 113.75/70 band, coincident at the same time with the 10-day sma.
Looking ahead, the pair should stay wary on the imminent decision by President Trump on the next Fed Chief, likely to be the current FOMC dovish governor and permanent voter Jerome Powell. Market participants, however, are not ruling out former front-runner John Taylor to succeed Janet Yellen.
Still with USD, Republicans will introduce the tax reform bill in Congress later today following Wednesday’s postponement.
In the US data space, initial claims, Challenger jobs cuts and speeches by FOMC’s J.Powell (dovish, permanent voter), Atlanta Fed R.Bostic (2018 voter, centrist) and NY Fed W.Dudley (permanent voter, centrist),
USD/JPY levels to consider
As of writing the pair is losing 0.03% at 114.14 and a break below 113.74 (10-day sma) would expose 113.07 (21-day sma) and then 112.97 (low Oct.31). On the other hand, the next up barrier lines up at 114.30 (high Nov.1) seconded by 114.45 (high Oct.27) and finally 114.51 (high Jul.11).