USD/JPY sitting pretty ahead of Trump's address to Congress

Currently, USD/JPY is trading at 112.72, down -0.02% on the day, having posted a daily high at 112.84 and low at 112.65.

Trump providing clues ahead of Congress - ANZ

USD/JPY is flat in the Tokyo open after the greenback performed a u-turn overnight and took the bears to the cleaners with a hard rally from 111.95 to 112.83 the high. The pair now consolidates sub 112.80 as investors await Trump's address to Congress in the US session. The yen was left for dust as investors made a final scurry on Wall Street with the benchmarks making record gains again and for consecutive sessions.

Forex today: Dollar strikes back, 10y recover from multi-week lows

US data had the United States Durable Goods Orders that arrived above forecasts (1.7%) in January: Actual (1.8%) and ex Transportation came in at -0.2%, below expectations (0.5%) in January. However, pending home sales were not so pretty and fell 2.8% in Jan (vs +0.6% expected). The data this was sufficient enough for the Atlanta Fed’s who rose their GDP model by 0.4% and now predicts a 2.5% annualised rise in Q1.

USD/JPY levels

Support levels start at 112.50, then 111.95 guarding 111.60 while the resistance levels come as113.05, before 113.45 guarding 113.90. Valeria Bednarik, chief analyst at FXStreet explained that with spot holding near a daily high of 112.72, the 4 hours chart shows that technical indicators have turned sharply higher from oversold readings and are currently entering positive territory. "Not enough at this point to confirm a stronger advance, whilst the 100 and 200 SMAs maintain bearish slopes above the current level, with the shortest around 113.05. The advance could extend, should the positive sentiment persist, although investors may turn cautious and wait for Trump's speech before the Congress before giving the pair another directional push."