USD/JPY: can USD/JPY break below 118.00?

By FXStreet FXStreet (Guatemala) -USD/JPY is relatively quiet at the moment. The market has been in risk-off mode for the start of the year and a lot of that has already been priced into the Yen.

USD/JPY has taken out key levels on the way down, but there is a good deal of support in the 118 handle slowing down the bears momentum. Fundamentally, Kuroda could be the bulls saving grace and his recent comments might support USD/JPY as the nation contemplates taking extra measures to achieve their inflation target of 2% in the given time frames.

Meanwhile, the ADP report for the US jobs sector might be another supporting factor for the dollar over the next few sessions until the Nonfarm Payrolls data is released, and if the ADP report is anything to go by a prelude then markets might brace for a decent outcome and another rally in the greenback.

Stocks should be monitored also and hints of further hikes from the Fed could be another supporting factor for higher USD/JPY, lower stocks and back we go, steadily towards the familiar ranges and the cluster of daily ma’s converging on the 121 handle. For now, all eyes are …read more

Source:: FX Street