USD/JPY keeps 113.00, short-term bearish

• Poor volumes as market on holidays mode
• Promising data from Japan
• USD/JPY turns short-term bearish

USD/JPY is trading around 113.20, amid extreme low volumes, ahead of the open of markets in Japan, where activity should pick up a bit in the morning session. 

Encouraging data out of Japan

From a fundamental standpoint, as Valeria Bednarik, notes: "There were multiple macroeconomic releases in Japan at the beginning of the day, with quite encouraging surprises coming from different sectors. Overall Household Spending rose 1.7% yearly basis in November, while in the same month, the unemployment rate fell to 2.7%. More relevant, inflation resulted higher-than-expected, with the National CPI doubling expectations in the 12 months to December, up 0.6%."

While the inflation readings remain quite distant from BOJ's mandate of 2.0%, as Valeria writes, "the readings reaffirmed the central bank's stance on inflation gradually moving towards the desired level."

USD/JPY technicals

Despite the limited volatility, according to Bednarik: "The pair retains its short-term bearish stance, with additional confirmations required at this point, as the pair continues developing above its 100 and 200 SMAs in the 4 hours chart. Technical indicators in the mentioned chart, however, have entered negative territory, but present limited strength downward. A break below 112.90 will likely favor additional declines with scope then to extend it toward 112.00."