USD/JPY strong in Tokyo vs bearish trend

FXStreet (Guatemala) - USD/JPY is currently trading at 119.73 with a high of 119.81 and a low of 119.56.

USD/JPY is bid in Tokyo but only against a strong bearish trend from 121.10 formed at the end of last week's business. The greenback is soft, some even calling for the end of the dollar's run, for now, while markets start to acknowledged that perhaps rate rises from the Fed are not going to be aggressive and may not even commence until the end of the year. There have been concerns over the strength of the US dollar for the US economy as the Fed enters the FX wars, recently downgrading their economic outlook and revealing the problematic implications of a strong dollar.

This week will come with US CPI's as well as GDP at the end of the week and markets will be paying particular attention to this data that comes so soon after Yellen's announcements at the Q&A session post the FOMC last week. Technically, the 55 day moving average at 119.29/09 could be an area of support on a resumption of the downtrend ahead of the Feb 16th low of 118.11 protecting February low at 116.64 and the 2015 lows in upper quarter of the 15 handle.

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