USD/JPY: bulls finding heavy work of the 111 handle

USD/JPY has stalled after the initial bid in early Asia's open that took out the 111.00 level and established a new high for H2 at 111.14.

Tokyo sold USD/JPY down to 110.76, but the pair holds back above 110.80 thus far in the open with a strong dollar at the start of this new week, after last week's statements from the BoJ that came as a warning to markets when the bank explained that they are prepared to buy an unlimited amount of securities and despite this renewed and post Trump election winning weakness in the yen.

Meanwhile, data from Japan today offered the trade balance for October as Y496.2bn vrs the expected Y610bn. We stay alert to any possible announcements from BoJ officials regarding the value of the Yen and now look to key data releases from the US such as durable goods and the FOMC minutes during the week ahead. FOMC minutes preview: looking for timings - Nomura

USD/JPY levels

USD/JPY holds onto the bullish trend through 110.00 level and the 55 week ma and has now penetrated through 111.00 and potentially targets the 50% retracement at 112.43. "Dips lower should now find that the 107.49 July high offers nearby support. Below here lies the 106.45 200 day ma and the 105.55 May low," suggested analysts at Commerzbank.