The buck is looking feisty again
Three guesses what's leading the charge? I'll give you a clue, guess the chart?
114.50/55 put in a strong bottom overnight. The old 114.75 level I had on my charts is now mostly redundant and 114.85/90 is where we're seeing support and resistance when messing around with 115.00.
USDJPY 15m chart
The 115.60 level marked the rally top yesterday. It's another one of those S&R points that happen to develop and it's also been strengthened by the 50.0 fib of the Dec drop.
USDJPY H1 chart
I think we're seeing more Trump related expectation coming into the market again. We saw that excitement before his last speech so there's more than a few traders thinking that they're owed a better delivery from Trump this time round. Are they right? They want to hope so. This will be Trump's day today and the time to set his stall out for the next 4 years (if he lasts that long). This is the time to be very bullish on America and it's fortunes. The big big risk is if he fails to deliver to the markets expectations. If that happens the dollar is going to get slaughtered.
In the meantime, expect the dollar to be led around by its short and curlies by bonds. Today is really all about the dollar so currencies like the pound and euro are really back seat passengers being taken on a ride. Be on guard for some pre-Trump squaring and positioning nearer the time.
