USD/JPY eyes on 118 handle

Currently, USD/JPY is trading at 117.45, down -0.12% on the day, having posted a daily high at 117.69 and low at 117.22.

USD/JPY has been  decent bid at the start of the week in Asia after the holidays and has rallied from below the 117 handle to aforementioned highs while the dollar gains traction in 2017 already.  The price is on the way to challenge the previous highs of where the pair dropped from 117.80 with 118.00 in target. The fundamentals are driving the price as we await Trump to take the helm on 20th Jan and the Fed are expected to hike rates three times throughout the year.

Policy uncertainty to remain high - Socgen

USD/JPY levels

With spot trading at 117.45, we can see next resistance ahead at 117.60 (Daily Open), 117.60 (Weekly High), 117.68 (Yesterday's High), 117.69 (Daily High) and 117.80 (Weekly Classic R1). Support below can be found at 117.39 (Daily Classic R1), 117.33 (Hourly 20 EMA), 117.22 (Hourly 200 SMA), 117.22 (Daily Low) and 117.07 (Hourly 100 SMA).