USD/JPY: bid within a correction of significant break below 112.00

Currently, USD/JPY is trading at 112.40, up 0.04% on the day, having posted a daily high at 112.42 and low at 112.26.

Wall Street mixed in volatile US session with plenty going on

USD/JPY has been in a minor correction from below the 112 handle and the recent lows of 111.58. The yen has been picking up a bid on the geopolitical uncertainties, but the greenback has come back into vogue with hawkish Fed speak and the euro creating some demand for the dollar overnight with the forthcoming elections starting to come to the fore.

Wall Street was a mixed bag and the flight to safety was apparent with higher bond prices and lower yields inversely. US data was positive with the trade balance that improved in Dec from -$45.7bn to -$44.3bn (-$45.0bn expected) - "Exports surged 2.7% while imports rose 1.5%," noted analysts at Westpac, adding, "The US dollar index is up 0.3% although it did give up its earlier gains during the NY session."

BOJ Summary of Opinions: Will take some time for inflation to accelerate

USD/JPY levels

USD/JPY took out the 38.2% retracement at 111.98 area and the 112.02 April high. "This suggests scope to the base of the cloud, which lies at 109.92 and, if seen, we look for this to hold (this is also the 50% retracement of the move up from November)," explained analysts at Commerzbank who see initial resistance  at 115.10 (imoku 2) noting the 16 month resistance line at 118.15.