USD/JPY: back on the bid, bulls pushing for more, 113.84 o/n highs to give?

Currently, USD/JPY is trading at 113.74, down -0.04% on the day, having posted a daily high at 113.82 and low at 113.55.

USD/JPY has been a mixed bag, but it has taken the markets attention, puzzled as to why the dollar was weak everywhere else but not again sthe yen. Kathy Lien has a take on that in an article she wrote here: Why Dollar fell against everything BUT the Yen

The key driver of the markets was Oil. WTI crude was up around 3% at one stage following Saudi Arabia and Russia’s commitment to extend production cuts. This drove the benchmarks on Wall Street higher to start the day and the yen suffered.  

US 10yr treasury yields benefitted from the risk-seeking mood, rising from 2.32% to 2.35%, while 2yr yields rose from 2.29% to 2.30%, as noted by analysts at Westpac who explained that the Fed fund futures yields also firmed, now pricing a June rate hike as an 85% chance (from around 80% the previous day). "The safe-haven yen was the worst performer, USD/JPY up from 113.20 to 113.85 over the past 24 hours," they explained. Currently, USD/JPY is picking up the bid again after an early Asina slump. 

USD/JPY levels

Analysts at Commerzbank explained that the market has recently eroded the 112.54 resistance line and the top of the cloud at 112.81 and these are expected to now act as support. "We look for a challenge of the 115.51/62 mid January high. Above here will target the 116.89 2015-2017 downtrend. Intraday Elliott waves counts suggest that we should see recovery from current levels."