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For the 24 hours to 23:00 GMT, the USD rose 0.56% against the JPY and closed at 110.27 on Friday.

In the Asian session, at GMT0400, the pair is trading at 109.96, with the USD trading 0.28% lower against the JPY from Friday's close.

The Japanese Yen gained ground against the USD, after overnight data showed that Japan's Nikkei services PMI climbed to a 3-month high level of 51.9 in January, compared to a reading of 51.1 in the prior month.

The pair is expected to find support at 109.50, and a fall through could take it to the next support level of 109.04. The pair is expected to find its first resistance at 110.45, and a rise through could take it to the next resistance level of 110.94.

The currency pair is trading between its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.47% against the CHF and closed at 0.9316 on Friday.

In the Asian session, at GMT0400, the pair is trading at 0.9308, with the USD trading 0.09% lower against the CHF from Friday’s close.

The pair is expected to find support at 0.9267, and a fall through could take it to the next support level of 0.9226. The pair is expected to find its first resistance at 0.9343, and a rise through could take it to the next resistance level of 0.9378.

Amid no macroeconomic releases in Switzerland today, investor sentiment would be governed by global macroeconomic factors.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.85% against the CAD and closed at 1.2389 on Friday.

In the Asian session, at GMT0400, the pair is trading at 1.2420, with the USD trading 0.25% higher against the CAD from Friday’s close.

The pair is expected to find support at 1.231, and a fall through could take it to the next support level of 1.2201. The pair is expected to find its first resistance at 1.249, and a rise through could take it to the next resistance level of 1.2561.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

Daily Pivots: (S1) 1.2305; (P) 1.2371; (R1) 1.2486; More...

Intraday bias in USD/CAD remains on the upside at this point. Rebound from 1.2246 short term bottom should extend to 1.2589 resistance first. Firm break there will indicate that pull back from 1.2919 has completed and and would bring retest of this resistance. On the downside, below 1.2246 will resume the fall from 1.2919 to retest 1.2061 key support.

In the bigger picture, rebound from 1.2061 is likely completed completed at 1.2919, rejected by 55 week EMA and kept below 38.2% retracement of 1.4689 to 1.2061 at 1.3065. The development also suggests that long term fall from 1.4689 is not completed yet. Decisive break of 1.2061 low will target 61.8% retracement of 0.9406 to 1.4689 at 1.1424. This will now be the favored case as long as 1.2919 resistance holds.

Daily Pivots: (S1) 0.7875; (P) 0.7960; (R1) 0.8003; More...

Intraday bias in AUD/USD remains on the downside. Fall from 0.8135 should target 55 day EMA (now at 0.7856). Sustained break there will argue that rise from 0.7500 has already finished and will bring deeper fall to retest this support level. On the upside, above 0.7986 minor resistance will turn intraday bias neutral first. But recovery will likely be limited below 0.8135 resistance at first attempt.

In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. It might still extend higher but we'd expect strong resistance from 38.2% retracement of 1.1079 to 0.6826 at 0.8451 to limit upside to bring long term down trend resumption. On the downside, break of 0.7500 support will now be an important signal that such corrective rebound is completed.

Daily Pivots: (S1) 1.2402; (P) 1.2459 (R1) 1.2511; More....

Intraday bias in EUR/USD remains neutral at this point. As long as 1.2222 support holds, further rise is in favor. Sustained break of 1.2494/2516 will target 100% projection of 1.0569 to 1.2091 from 1.1553 at 1.3075 next. However, break of 1.2222 will indicate rejection from 1.2494/2516, on bearish divergence condition in 4 hour MACD, and turn near term outlook bearish for 1.1915 support first.

In the bigger picture, rise from 1.0339 medium term bottom is still seen as a corrective move for the moment. But key fibonacci level at 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 is looking vulnerable. Sustained break of 1.2516 will carry larger bullish implication and target 61.8% retracement of 1.6039 to 1.0339 at 1.3862. Nonetheless, rejection from 1.2516 will maintain long term bearish outlook and keep the case for retesting 1.0039 alive.

Daily Pivots: (S1) 1.4052; (P) 1.4165; (R1) 1.4229; More.....

Intraday bias in GBP/USD remains neutral as consolidation from 1.4345 continues. In case of another fall, downside should be contained by 1.3915 support to bring rally resumption. On the upside, break of 1.4345 will resume medium term up trend to 100% projection of 1.2108 to 1.3651 from 1.3038 at 1.4581 next. However, break of 1.3915 will argue that, at least, deeper pull back in underway to 1.3651 resistance turned support.

In the bigger picture, sustained break of 1.3835 key resistance level indicates that rebound from 1.1946 is at least correcting the long term down from from 2007 high at 2.1161. Further rise should now be seen back to 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466. Medium term outlook will stay bullish as long as 1.3038 support holds, in case of pull back.

Daily Pivots: (S1) 0.9259; (P) 0.9298; (R1) 0.9345; More...

While downside momentum in USD/CHF is diminishing as seen in 4 hour MACD, deeper decline is still expected with 0.9392 minor resistance intact. Current fall from 1.0037 would target next fibonacci projection level at 0.9115. On the upside, break of 0.9392 minor resistance, however, will indicate short term bottoming and bring stronger rebound.

In the bigger picture, the strong break of 0.9420 support suggests that fall from 1.0342 is developing into a medium term down trend. Deeper fall should be seen to 100% projection of 1.0342 to 0.9420 from 1.0037 at 0.9115. Break will target 161.8% projection at 0.8545. In any case, break of 0.9640 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will stay bearish even in case of strong rebound.

Daily Pivots: (S1) 109.45; (P) 109.97; (R1) 110.65; More...

USD/JPY retreats mildly today but stays above 109.22 minor support. Intraday bias remains on the upside for further rise to 111.47 resistance. As noted before, a short term bottom was also in place at 108.27. Sustained break of 111.47 will also have 55 day EMA (now at 111.33) firmly taken out. In such case, further rise would be seen back to 113.38/114.73 resistance zone. On the downside, however, below 109.22 minor support will turn focus back to 108.27 instead.

In the bigger picture, current development argues that the corrective pattern from 118.65 is extending. There is risk of dropping further to 61.8% retracement of 98.97 to 118.65 at 106.48. But this level should provide strong support to contain downside and bring resumption of rise from 98.97. However, sustained break of 106.48 will now likely send USD/JPY through 98.97 to resume the corrective fall from 125.85 (2015 high).

Global stock market rout extends into Asian session today. At the time of writing Japanese Nikkei is down -2.2% and Hong Kong HSI is down -1.6%. The currency markets are relatively mixed, though. Aussie and Yen are both trading mildly higher, but neither one display any sign of conviction. Dollar pares back some of Friday's gain. And the greenback is still looking bearish against Europeans. It's believed the current risk aversion is driven by the increasing expectation of global monetary stimulus withdrawal. And, such expectation intensified after the strong employment data from US. So far, commodities currencies are the biggest victim and Swiss Franc is the largest beneficiary of the theme.

Yellen: Disappointed for not given a second term

Janet Yellen stepped down as Fed Chair and Jerome Powell is taking over the job today. Yellen said in an interview with CBS Sunday Morning that it has been common for Fed chairs to serve a second term. And she noted that "I do feel a sense of disappointment," for not being nominated by President Donald Trump. Nonetheless, she hailed that Powell is "thoughtful, balanced, dedicated to public service." Regarding the achievements of the Fed during her era, she said that "the financial system is much better capitalized. The banking system is more resilient." And, "our overall judgment is that, if there were to be a decline in asset valuations, it would not damage unduly the core of our financial system."

Germany coalition talk enters extra time

In Germany, Chancellor Merkel's CDU/CSU and the Social Democrats couldn't conclude the coalition negotiations in time to meet the self-imposed deadline of Sunday. The talks will enter into extra time today. On the positive side, agreements were made on housing and digital economy. But, it's believed that two key issues remain on the table, including SPD's demand to tighten up rules for businesses to grant temporary contracts, and aligning doctors pay between private and public health care.

Barnier, May and Davis to meet again on Brexit talks

EU Brexit negotiator Michel Barnier will meet with UK Prime Minister Theresa May and Brexit Secretary David Davis in Downing Street today. That's the first meeting between the trio since December as the negotiation is now in its second phase. However, it's clear that key figures of May's Conservatives don't have any consensus regarding the future relationship with EU yet. Tensions intensified last week on the topic of whether UK will stay in the EU customs union, or just strike some custom arrangements. And there are criticisms on the Cabinet being vague and divided with May sticking to one policy while the Chancellor advocate another.

BoE Super Thursday to highlight the week

Three central banks will meet this week, RBA, RBNZ and BoE. All are expected to keep monetary policies unchanged. BoE will be the major focus with quarter Inflation Report featured. There are increasing speculations that BoE would pull ahead the next rate hike. In a Bloomberg survey, 13 out of 32 economists predicted the next hike coming as soon as in May. Another 5 predicted it to happen in August. The economic projections to be published in the Inflation Report will be a key to such market expectations. But the determining factor would be the outcome of the Brexit transition agreement with EU.

There are also some important economic data to watch, including UK PMI services and productions, US ISM services, Australia retail sales, New Zealand employment; Canada employment and China trade balance, CPI.

• Monday: Eurozone PMI services final, Sentix investor confidence, retail sales; UK PMI services; US ISM services
• Tuesday: RBA rate decision, Australia retail sales, trade balance; German factory orders; Eurozone retail PMI; Canada trade balance, Ivey PMI; US trade balance
• Wednesday: New Zealand employment; Japan labor cash earnings, leading indicators; German industrial production; Swiss foreign currency reserves; Canada building permits
• Thursday: RBNZ rate decision; Japan current account; China trade balance; Germany trade balance; ECB monthly bulletin; BoE rate decision; Canada housing starts, new housing price index; US jobless claims
• Friday: Australia home loans; China CPI and PPI; Japan tertiary industry index; Swiss unemployment; UK productions, trade balance; Canada employment

USD/JPY Daily Outlook

Daily Pivots: (S1) 109.45; (P) 109.97; (R1) 110.65; More...

USD/JPY retreats mildly today but stays above 109.22 minor support. Intraday bias remains on the upside for further rise to 111.47 resistance. As noted before, a short term bottom was also in place at 108.27. Sustained break of 111.47 will also have 55 day EMA (now at 111.33) firmly taken out. In such case, further rise would be seen back to 113.38/114.73 resistance zone. On the downside, however, below 109.22 minor support will turn focus back to 108.27 instead.

In the bigger picture, current development argues that the corrective pattern from 118.65 is extending. There is risk of dropping further to 61.8% retracement of 98.97 to 118.65 at 106.48. But this level should provide strong support to contain downside and bring resumption of rise from 98.97. However, sustained break of 106.48 will now likely send USD/JPY through 98.97 to resume the corrective fall from 125.85 (2015 high).

Economic Indicators Update