USD/JPY fragile on earthquake and tsunamis

Currently, USD/JPY is trading at 110.32, down -0.65% on the day, having posted a daily high at 111.06 and low at 110.25.

USD/JPY was holding firm with spot that was trading at 110.65, but USD/JPY now looks fragile above the 110.00 level and the 55 week ma on the sell-off from five-month highs that extended on the back of the Earthquake and Tsunami warnings. The greenback was already fragile having ducked back below the 101 handle in the DXY overnight in overbought territory as markets take profits and rethink Trump's election to president of the USA who is scheduled to take the helm on 20th January.

How does today's tsunamis in Japan compare to 2011? Much lesser risk of Yen strength on repatriation flows

USD/JPY levels

On further declines, and below the following support levels in the near term, risks are for a test down to 108.50/107.10 levels. Support below can be found at 110.25 (Daily Low), 110.09 (Daily Classic S1), 109.94 (Hourly 100 SMA), 109.49 (Weekly Classic PP) and 109.35 (Daily Classic S2). Next resistance can be seen at 110.83 (Monthly High), 110.83 (Weekly High), 110.87 (Hourly 20 EMA), 111.04 (Daily Open) and 111.06 (Daily High). A break there targets the 50% retracement at 112.43.