USD/JPY recovers in cautiously bullish territory

Currently, USD/JPY is trading at 112.39, down -0.60% on the day, having posted a daily high at 113.02 and low at 111.34.

USD/JPY is in recovery of last week's sell-off from the 113.88 highs to aforementioned low for today with a mixed greenback to start the week and likely in a phase of consolidation on a key week for the US calendar and after reaching multi-year highs post Trump's victory.

Analysts at Rabobank explained that while the Japanese authorities will be grateful for the current strength of the USD, the Abe government is likely to be deeply concerned about the protectionist threats of the President-elect. 

"If Trump follows through on his threats, this has the potential to have severe consequences for Japan's export outlook both directly and through its trade with China. Japan's ambassador to China was reported as saying that the TTP was not completely dead. While it will be tough to resurrect the pact without the US, Japan is expected to play a leading role in the fight against isolationist policies in the coming years."

USD/JPY levels

USD/JPY: bullish, with caution towards 113.00 - Scotiabank

Current price is 112.39, with resistance ahead at 112.41 (Weekly Classic PP), 112.42 (Hourly 20 EMA), 112.44 (Daily Classic S1), 112.55 (Yesterday's Low) and 113.00 (Daily Open). Next support to the downside can be found at 112.33 (Hourly 100 SMA), 111.81 (Daily Classic S2), 111.34 (Daily Low), 111.22 (Hourly 200 SMA) and 111.08 (Daily Classic S3).