USD/JPY bulls robust on 110 handle in Tokyo

Currently, USD/JPY is trading at 110.17, up 0.19% on the day, having posted a daily high at 110.36 and low at 109.89.

USD/JPY bulls are robust in the Tokyo open, with a slight offer but demand picking up the baton again. USD strength remains the theme today with the moves in global yields and commodity prices supporting the bid after the Trump fuelled rally in risk in what was a u-turn event on the day of the election's results and Trumps victory. Markets are expecting a phase of inflation in the near future and for that, are pricing in dollar strength ahead of the curve. Overnight, Yellen was the focus in this respect and the Yen was pushed down throughthe 110 handle vs the greenback.

Economic wrap: Yellen and CPI drive greenback - Westpac

"Developments in currencies will likely continue to be driven by Yields and the USD generally pushed higher overnight, although moves in fixed income remained aligned with recent ranges," explained analysts at ANZ adding, "The tone of Fed speakers and Chair Yellen did little to sway expectations that the Fed will hike next month, although there is little appetite to change views on the outlook for 2017-18 at this stage."

USD/JPY levels

Current price is 110.18, with resistance ahead at 110.21 (Daily Classic R2), 110.36 (Daily High), 110.65 (Daily Classic R3), 110.73 (Weekly Classic R2) and 114.50 (Weekly Classic R3). Next support to the downside can be found at 110.01 (Yesterday's High), 109.97 (Daily Open), 109.97 (Monthly High), 109.97 (Weekly High) and 109.89 (Daily Low).