USD/JPY (current price: 116.40)
The Japanese Manufacturing PMI came in at 52.4, beating the consensus estimate of 51.9 in December. The Yen remained relatively weak compared to most of its peers, despite the positive releases, as the pair traded near the long-term high of 118.50 in early trading. The bullish European numbers pushed the pair lower, but the long-term trend remains positive. The mixed FOMC Meeting Minutes gave a boost to the Yen driving the cross well below the opening rate.
Our assessment: USD/JPY is still in a short-term consolidation pattern. The long-term trend is still bullish with strong support at 115.50.
