USD/JPY: bears held up in minor correction, bearish bias below 115.50

Currently, USD/JPY is trading at 115.54, down -0.42% on the day, having posted a daily high at 116.36 and low at 115.18.

According to the recent CFTC commitment of traders report, having been increasingly bearish on the yen for nine consecutive weeks, speculators have taken a breather. "The levels of yen shorts has dropped back modestly signaling that the momentum behind the carry trade may have started to stall," explained analysts at Rabobank.

Meanwhile, the greenback has been giving back ground across the board, with much of the good news and post Trump/FOMC bullishness has already priced-in to the USD, we are seeing some equilibrium coming into play while we await further catalysts to set the scene.

USD/JPY levels

Analysts at Scotiabank explained that the MACD has moderated, the RSI appears set to drop below 50, DMI’s have confirmed the shift in the balance of risk and the 9 day MA continues to soften below the 21 day MA. "Recent support has been observed at 115.50 with resistance at 117.50. Support is limited ahead of 114 and the 50 day MA (113.14)."

Current price is 115.54, with resistance ahead at 115.57 (Weekly Low), 115.57 (YTD Low), 115.91 (Hourly 20 EMA), 115.96 (Yesterday's Low) and 116.03 (Daily Open). Next support to the downside can be found at 115.47 (Daily Classic S1), 115.19 (Weekly Classic S1), 115.18 (Daily Low), 115.02 (Monthly Low) and 114.92 (Daily Classic S2).