USD/JPY: bid in Tokyo as dollar picks up the pace again

USD/JPY is slightly bid in the Tokyo open after a poor show on Wall Street where stocks dropped off a cliff on poor earnings, oil on the decline and the US dollar rallying hard a concern for multinationals and their translation risk.

USD/JPY started out of yesterday's business form the 104 handle and dropped through late Asia and European trade to clear almost a cent in weakness with 103.17 the low scored in the US session. The price continues to develop on the upside at time of writing in Tokyo and pressing towards the mid-point of the handle while we await comments from Kuroda who is in the Japanese parliament today, early doors, 0030GMT. Meanwhile, keeping an eye on the pound and risk sentiment around Brexit still.

USD/JPY levels

USD/JPY was unable to find the September high at 104.32 that are the guarding levels for May's low at 105.55. To the downside, analysts at Commerzbank suggested, "Slips should find support between the 102.79 September 21 high and the 55 day moving average. Longer term we suspect that the market is basing and target the 107.4th July high and the 200 day ma at 108.15 at this stage."