USD/JPY (current price: 111.81)
The Japanese Yen pushed to a new 3-month high compared to the USD together with precious metals yesterday. The pair fell below the 112 level on Monday, as investors remain cautious regarding the Asian economic growth, while the new U.S. President’s policies continue to cause uncertainty as well. Japanese Leading Indicators came in slightly below the expected level in January, but they still beat the prior readings, helping the rally in the Yen throughout the day.
Our assessment: USD/JPY possibly started a new leg lower in the ongoing short-term downtrend yesterday. The pair might re-test the 11.25 support in the coming days.
