USD/JPY: sharply offered in the Tokyo open with a bearish outlook

Currently, USD/JPY is trading at 112.11, down -0.28% on the day, having posted a daily high at 112.59 and low at 112.10.

Dollar index drops modestly ahead of employment data

USD/JPY has been sold off in the Tokyo open following a lackluster day on Wall Street, slightly higher, but off the record highs with month end approaching and financial markets are stuck in broad consolidation mode.

The USD has been weakening into month end as well while bond markets are awaiting further catalysts to test the 'reflation' theme that has sent them in a tail spin since Trump was elected to take the US presidency on the 20th January's inauguration.

Oil was the biggest mover, with WTI 4% lower while any expectations for any meaningful agreement from the OPEC meeting tomorrow receding. This will be the main event tomorrow driving risk and the Yen with it ahead of the end of week's nonfarm payrolls event.

USD/JPY levels

Current price is 112.11, with resistance ahead at 112.15 (Daily Classic PP), 112.41 (Weekly Classic PP), 112.43 (Daily Open), 112.50 (Hourly 20 EMA) and 112.59 (Daily High). Next support to the downside can be found at 112.10 (Daily Low), 111.72 (Hourly 200 SMA), 111.62 (Yesterday's Low), 111.29 (Daily Classic S1) and 111.06 (Weekly Low).