USD/JPY: offered in Tokyo below the 116 handle, when/where will the greenback bounce back from?

Currently, USD/JPY is trading at 115.67, up 0.04% on the day, having posted a daily high at 115.91 and low at 115.63.

USD/JPY is slightly offered and losing territory below the 116 handle within the bearish trend that has unfolded form above the 118 handle and 3rd Jan highs of 118.60. However, the hysteria over Trump and the Fed could pipe up quite quickly again at any time with the greenback still regarded as a safe haven as we embark on uncertain times. Moreover, investors appetite was increasing into year end, hungry for yield that the US markets may still continue to offer supporting a view for the Fed to continue hiking and vrs the BoJ, the divergence offers a favourable long dollar position.

Key questions for 2017 - ANZ

Analysts at Rabobank expanded on that, "Despite the fairly upbeat tone struck by Kurodo in his December speech, the clear difficulties for the BoJ in reaching its inflation objectives suggest there is little chance of the BoJ stepping back from its aggressive asset purchases programme any time soon - It was anticipation of widening interest rate differential between the US and Japan that drove USD/JPY higher in the weeks after the US election."

USD/JPY: headed to 120 before 115 by end of the year - Rabobank

USD/JPY levels

With spot trading at 115.68, we can see next resistance ahead at 115.84 (Hourly 20 EMA), 115.91 (Daily High), 116.29 (Hourly 100 SMA), 116.36 (Daily 20 SMA) and 116.36 (Yesterday's High). Support below can be found at 115.63 (Daily Open), 115.63 (Daily Low), 115.57 (Weekly Low), 115.57 (YTD Low) and 115.47 (Daily Classic S1).