USD/JPY: better bid in Tokyo after strong close overnight on Wall Street and ECB

Currently, USD/JPY is trading at 114.25, up 0.24% on the day, having posted a daily high at 114.27 and low at 113.94.

Wall Street continues its winning streak and makes new highs

USD/JPY is bid in Tokyo, extending the rally from overnight where Wall Street managed another record close and the dollar continues to attract demand on the basis of the possibility of reflation in the US and the fed hiking interest rates along with widening divergence to the ECB and BoJ.

ECB delivered a bazooka today - ANZ

"Japan revised Q3 GDP growth unexpectedly lower to 0.3% rather than 0.5%, which reduces the annualized rate to 1.3% from 2.2%," noted analysts at Brown Brothers Harriman earlier, adding, "Business spending and inventories drove the revisions, while the upticks in consumption were insufficient to do more than blunt some of the impacts. The GDP deflator was revised to minus 0.2% from minus 0.1%, leaving Japan as one of the few countries still experiencing deflation."

USD/JPY levels

With spot trading at 114.26, we can see next resistance ahead at 114.27 (Daily High), 114.32 (Daily Classic R1), 114.38 (Yesterday's High), 114.42 (Monthly High) and 114.88 (Daily Classic R2). Support below can be found at 114.03 (Weekly High), 113.98 (Daily Open), 113.95 (Hourly 20 EMA), 113.94 (Daily Low) and 113.89 (Hourly 100 SMA).