- USD / JPY reverses the intraday trend after hitting 115.35, the highest since late November.
- The dollar weakens against the European majors and the yen, but remains firm against AUD, NZD and CAD.
The USD / JPY rose hours ago to 115.36, the highest level since November 26, but then reversed the trend and fell to daily lows just below 115.00. It remains in the area of ​​lows, now with dominant downside risks in the very short term.
The dominant trend in USD / JPY is still bullish, but the reversal from the 115.30 area put an alert on advances. A drop below 115.00 could lead to an extension of the correction. Supports are then seen at 114.70 and 114.50. A return above 115.20 would restore strength to the dollar.
Last year’s USD / JPY peak is at 115.50. If this area is exceeded, the routes to the north could be extended, in line with the dominant trend.
The greenback trimmed gains in the market in recent hours, after losing ground against the EUR and GBP, as well as the yen. Although against the AUD, NZD and CAD it remains firm. For the USD / JPY the reopening of the Treasury bond market will be key.
The tours of the currency market are still somewhat limited, favored this for being a Monday, and in particular with holidays in various countries. In the US, the final reading of the IHS Markit PMI for December and the construction spending report for November will be published.
The rest of the week is loaded in the US after weeks with some calm. Figures from the official employment report for December will be released on Friday, with an expectation of an increase in non-farm payrolls of 400,000. On Wednesday, the ADP private sector employment report will be released, as well as the minutes of the last meeting of the Federal Reserve. In Japan inflation figures will be released on Friday.
Technical levels
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