USD/JPY (current price: 112.18)
Japanese Bank Lending grew by less than expected in January, posting an annualized reading of 2.5%. The Current Account surplus was also below expectations, as the Economy Watchers Sentiment Index also dipped below the 50 threshold. With no major releases coming out from the U.S., the pair had a less volatile day. USD/JPY finished the session near the opening rate despite the bearish Japanese numbers, as the pair is down by more than 600 pips so far this year.
Our assessment: The cross remains in a declining short-term trend, after the weak bounce off the recent lows. Strong support is still found at 111.25, with long-term resistance at 115.
