USD/JPY (current price: 113.00)
Japanese All Industries Activity rose by less than expected in December, coming in at 0.3% compared to the consensus estimate of 0.4%. The Japanese Manufacturing PMI was higher than expected in the same period, helped by the weakness in the Yen. U.S. Treasury Secretary nominee Mnuchin told the Senate that he thinks that the U.S. Dollar is “excessively strong”, causing a sell-off in the currency in late trading. The Yen remained relatively strong compared to the other majors, after Friday’s encouraging session.
Our assessment: The pair had a very negative session yesterday, as the Dollar pushed lower against its peers. Strong support remains below the current price at 111.25, after re-testing last week’s lows near 112.50.
