USD/JPY: Holds Firm In The Wake Of EUR/USD's Down Turn

USD/JPY holds firm in the wake of EUR/USD's down turn. USD/JPY recovered from the 117.30 area and moved back towards 117.60 but has been unable to overcome 117.65 offers. These have capped since the Asian afternoon, with Japanese exporters reportedly on the top.

Further selling interest is noted at 117.75 and towards the 117.90/00 region. The heavier EUR/USD tone could signal further dollar adjustment in the European afternoon. Import prices and claims data is on the data slate for markets to focus on but it will be tomorrow's US CPI and US TIC data which will drive action into the holiday period.

USD/JPY has the Tankan report to contend with at the start of the Asian session. Recent Japanese press reports suggest that rates will remain steady in Japan regardless of the Tankan headline. A market driven by yield should support prices in the near-term, with focus still on 118.50 especially with US rates on hold for the foreseeable future and Japan favouring steady near-term policy.