USD/JPY: flat on the open with upside bias through 117.80, targets break of 118.00

Currently, USD/JPY is trading at 117.73, down 0.00% on the day, having posted a daily high at 117.79 and low at 117.54.

Wall Street in the green, dollar ripped, oil dumped

USD/JPY has opened with a slight bid following the green day on Wall Street and a rally in the greenback keeping the bears at bay. The dollar hit a 14 year high overnight and is trading out of the technical bullish channel exposing further room to the upside as we await Trump to take the helm of the US and arguably the global economy with his policies intended to break away from globalisation commitments and ties in an attempt to make America great again within a protectionist climate.

Meanwhile, the Fed has proposed to hike rates three times this year and that divergence between global Central Banks is driving investors towards higher yielding dollar denominated investments supporting demand for the dollar.

USD/JPY levels

With spot trading at 117.73, we can see next resistance ahead at 117.73 (Hourly 20 EMA), 117.73 (Daily Open), 117.79 (Daily High), 117.80 (Weekly Classic R1) and 117.94 (Daily Classic R1). Support below can be found at 117.73 (Weekly High), 117.60 (YTD High), 117.60 (YTD Low), 117.54 (Daily Low) and 117.34 (Daily Classic PP).