USD/JPY surrenders 113 handle on Trump’s rhetoric

The greenback manages to hold onto recovery gains against most of its majors, keeping the USD/JPY pair underpinned somewhat, after Trump failed once again to offer details into his fiscal spending plans and tax reforms during his Congressional address, leaving markets unimpressed. The US President Trump sang the same old tune that Obama care will be replaced, while at the same time noted the rhetoric on tax cut plans.

Despite, a non-event Trump’s address, the major manages to find support from rallying treasury yields, in wake of hawkish comments from Fed’s William Dudley, Robert Kaplan and John Williams. However, it remains to be seen that for how long the spot will defend gains amid yet another Trump disappointment.

Next of note for the major remains a fresh batch of US economic updates due later in the NA session, while markets will continue to digest Trump’s latest speech.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.59 (100-DMA). A break above the last, the major could test 113.90 (50-DMA) and 114.50 (zero figure) beyond the last. While to the downside, the immediate support is seen at 112.53 (5-DMA) next at 112 (zero figure) and below that at 111.70 (Feb 9 low).