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For the 24 hours to 23:00 GMT, the USD rose 1.02% against the JPY and closed at 114.48.

In the Asian session, at GMT0400, the pair is trading at 114.97, with the USD trading 0.43% higher from yesterday's close.

Overnight data showed that Japan's national consumer price index (CPI) advanced more-than-expected by 0.3% on an annual basis in December, against market expectations for a rise of 0.2%. In the previous month, the CPI had climbed 0.5%.

The pair is expected to find support at 113.77, and a fall through could take it to the next support level of 112.57. The pair is expected to find its first resistance at 115.6, and a rise through could take it to the next resistance level of 116.23.

Moving ahead, next week traders will closely monitor BoJ's interest rate decision coupled with its meeting minutes. Also, Japan's unemployment rate, industrial production, final Nikkei manufacturing PMI, retail trade, large retailer's sales and consumer confidence data, will also pique investor attention.

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

For the 24 hours to 23:00 GMT, the USD rose 0.08% against the CHF and closed at 0.9997.

Macroeconomic data revealed that Switzerland’s trade surplus narrowed to a level of CHF 2.7 billion in December, following a revised surplus of CHF 3.5 billion in the prior month.

In the Asian session, at GMT0400, the pair is trading at 1.0008, with the USD trading 0.11% higher against the CHF from yesterday’s close.

The pair is expected to find support at 0.9973, and a fall through could take it to the next support level of 0.9937. The pair is expected to find its first resistance at 1.0035, and a rise through could take it to the next resistance level of 1.0061.

Looking ahead, investors would await Switzerland’s real retail sales, KOF leading indicator and SVME-purchasing managers’ index, all scheduled to release next week.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.18% against the CAD and closed at 1.3092.

In economic news, Canada’s CFIB business barometer index declined to a level of 60.1 in January, after recording a reading of 60.7 in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.3111, with the USD trading 0.15% higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.3065, and a fall through could take it to the next support level of 1.302. The pair is expected to find its first resistance at 1.3143, and a rise through could take it to the next resistance level of 1.3176.

Going ahead, Canada’s GDP and RBC manufacturing PMI, due to release next week, both will be on investor’s radar.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

Daily Pivots: (S1) 143.20; (P) 143.86; (R1) 144.84; More...

Intraday bias in GBP/JPY remains on the upside as rebound from 136.44 extends today. Corrective fall from 148.42 should have completed at 136.44 already. Further rally should be seen to retest 148.42 first. Break will extend the larger rise from 122.36 and target 150.42 fibonacci level next. n the downside, below 140.74 minor support will turn bias back to the downside for 136.44.

In the bigger picture, price actions from 122.36 medium term bottom are seen as developing into a corrective pattern. Upside is so far limited below 38.2% retracement of 195.86 to 122.36 at 150.42 for setting the medium term range. At this point, we don't expect a break of 122.36 in near term and the corrective pattern would extend for a while. Though, sustained break of 150.42 will target 61.8% retracement at 167.78.

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Daily Pivots: (S1) 121.76; (P) 122.21; (R1) 122.76; More...

Intraday bias in EUR/JPY stays neutral as consolidation from 124.08 extends. Rebound from 109.20 is not finished yet. Break of 124.08 will extend such rise and target 126.09 key resistance next. Meanwhile, below 120.54 will target 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). We'd expect strong support from there to contain downside.

In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. There is prospect of another rise towards 126.09 key resistance level before completion. But even in that case, we'd expect strong resistance between 126.09 and 141.04 to limit upside, at least on first attempt. Sustained trading below 55 day EMA will pave the way to retest 109.20.

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Daily Pivots: (S1) 0.8456; (P) 0.8495; (R1) 0.8519; More...

EUR/GBP's recovery from 0.8303 has likely finished at 0.8851 already. Break of 0.8449 support will confirm this case and target 0.8303. Break will extend the whole corrective fall from 0.9304 and target 0.8116 support. In case of another rise, we'd now expect strong resistance at 61.8% retracement of 0.9304 to 0.8303 at 0.8922 to limit upside and bring near term reversal.

In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Deeper fall cannot be ruled out yet. But we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Overall, the corrective pattern would take some time to complete before long term up trend resumes at a later stage. Break of 0.9304 will pave the way to 0.9799 (2008 high).

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Daily Pivots: (S1) 1.4148; (P) 1.4187; (R1) 1.4216; More...

Intraday bias in EUR/USD remains neutral for the moment. Near term outlook stays bearish as the corrective decline from 1.6587 is still in progress. Below 1.4025 will target 1.3671 key support level. We'd expect downside to be contained there to bring reversal. Meanwhile, above 1.4251 minor resistance will turn focus back to 1.4721 resistance.

In the bigger picture, price actions from 1.6587 medium term top are viewed as a consolidative pattern. 50% retracement of 1.1602 to 1.6587 at 1.4095 was already met. While further fall cannot be ruled out, we'd expect strong support above 1.3671 to contain downside and bring rebound. Up trend from 1.1602 should not be finished and will resume later. Break of 1.4721 resistance will be the first sign of resumption of up trend from 1.1602 and target retesting of 1.6587 high first.

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Daily Pivots: (S1) 1.0653; (P) 1.0698; (R1) 1.0728; More...

The break of 1.0677 support in EUR/CHF suggests down trend resumption. Intraday bias is now on the downside for 1.0620 key support level next. Break will confirm resumption of whole fall from 1.1198. On the upside, break of 1.0749 resistance is now needed to indicate near term reversal. Otherwise, outlook will remain bearish in case of recovery.

In the bigger picture, the decline from 1.1198 is seen as a corrective move. Such correction is still in progress and retest of 38.2% retracement of 0.9771 to 1.1198 at 1.0653 could be seen. Sustained trading below 1.0653 will target 50% retracement at 1.0485. Meanwhile, break of 1.0897 resistance will argue that the larger up trend is finally resuming for above 1.1198.

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Global Markets:

• Asian stock markets: Nikkei up 0.20 %, Shanghai Composite gained 0.30 %, Hang Seng rose 0.10 %, ASX 200 rallied 0.75 %
• Commodities: Gold at $1183 (-0.55 %), Silver at $16.73 (-0.70 %), WTI Oil at $53.80 (+0.05 %), Brent Oil at $56.20 (-0.10 %)
• Rates: US 10 year yield at 2.51, UK 10 year yield at 1.51, German 10 year yield at 0.48

News & Data:

• Japan National CPI (YoY) Dec: 0.3% (est. 0.20%, prev. 0.50%)
• Japan National CPI Ex-Fresh Food (YoY) Dec: -0.2% (est. -0.30%, prev. -0.40%)
• Tokyo CPI (YoY) Jan: 0.1% (est. 0.00%, prev. 0.00%)
• Tokyo CPI Ex-Fresh Food (YoY) Jan: -0.3% (est. -0.40%, prev. -0.60%)
• Australia Export Price Index (QoQ) Q4: 12.4% (est. 12.10%, prev. 3.50%)
• Australia Import Price Index (QoQ) Q4: 0.2% (est. 0.40%, prev. -1.00%)
• Australia PPI (YoY) Q4: 0.7% (prev. 0.50%)
• Australia PPI (QoQ) Q4: 0.5% (prev. 0.30%)
• U.S. new home sales fall; weekly jobless claims rise – RTRS
• Asia shares steady, dollar and oil extend gains on renewed optimism – RTRS

Markets Update:

The US Dollar strengthened overnight, especially against the Yen. USD/JPY opened around 114.40 in Tokyo and rallied to a high of 115.06. The market is expecting the large tax cuts and infrastructure spending that US President Trump promised, and which have driven US stock markets to fresh record highs as well. From a technical perspective, the pair faces strong resistance at 115.50-70, followed by 116.90, while support lies at 114.00.

The Pound had quite a rally this week, but ran out of momentum yesterday. Support is now seen at 1.2540, and a break would signal a retracement back to 1.24. The Euro has come under pressure as well, and a break below the 1.0620 support level would confirm the short-term top at 1.0770 and pave the way for a deeper retracement. The next notable support level would then lie at 1.05.

Gold extended losses in Asia, as the strong dollar and rising equity markets are weighing on the precious metals. Support is noted at $1176, and a break below would switch the technical outlook to bearish.

Upcoming Events:

• 13:30 GMT – US GDP
• 15:00 GMT – US Michigan Consumer Sentiment

Key Points:

• AUDNZD trading within a descending channel.
• Price action nearing lower channel constraint.
• RSI Oscillator enters a reversal zone.

The embattled AUDNZD has been on a largely downward trajectory over the past few months as markets have reacted to deteriorating Australian domestic economic conditions. Subsequently, we have witnessed the pair trading within a relatively tight descending channel that has largely constrained the pair's price action. However, despite the AUDNZD's bearish disposition, the pair is getting ready to rally, albeit in the short term.

Assessing the pair from the technical perspective provides some enticing evidence of a potential setup for a rally. The past few days has seen price action moving steadily towards the lower channel constraint which has been a key reversal zone in past periods. In addition, the RSI Oscillator is nearing oversold territory and there is some historical evidence of some sharp reversals from this level. Subsequently, there is building evidence that we may indeed see a relatively strong bounce for the Australian Dollar in the coming days.

In contrast, the fundamental outlook for the Australian economy is relatively murky at best as the antipodean nation faces diminished growth in the coming few quarters. There is already evidence of an uptick in the unemployment rate as well as slipping inflationary pressures. Although the Australian economy may indeed avoid a technical recession, there is likely to still be plenty of negative aspects that will impact currency valuations in the coming months.

Ultimately, despite their being plenty of reasons to take a bearish view on the pair in the long run, the short term outlook is decidedly more bullish. Subsequently, the most likely scenario for the next few days is one where price action discovers support around the bottom of the channel before moving rapidly higher to challenge the 61.8% retracement level around the 1.0422 mark. The upside target would likely fall around the 1.0554 level, especially considering that there is currently little chance of a break out of the short term channel. Subsequently, keep a close watch on the pair in the early part of next week as it could be setting up to fly, albeit in the short run.