USD/JPY Mid-way

USD/JPY is in the middle of its downward short-term trend in today's preopen European hours. The pair is now 113.68 and is caught between support at 112.00 and resistance at 115.00. The trend shows that the pair progressively weakens and therefore we can expect the resistance to change the direction back from the correction wave to the downside.

However, we should not undermine market's strength amid strong US expectations and so, USD/JPY can make an attempt to go above short-term resistance and reach mid-term resistance at 118.60.

We don't have any major news scheduled for today, but the next two days are packed with financials such as Chair Yellen's speech before senate on Tuesday and the Consumer Price Index on Wednesday.

Chart: USD/JPY H4