U.S. Stock Futures Rise as Trump Takes Office, Corporate Earnings Awaited 
Elliott Investment Management Takes Significant Stake in BP to Push for Value Growth 
How the UK’s rollback of banking regulations could risk another financial crisis 
U.S. Condemns China's Dominance in Global Shipbuilding and Maritime Sectors 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
UK Markets Face Rising Volatility as Hedge Funds Target Pound and Gilts 
Apple Downgraded by Jefferies Amid Weak iPhone Sales and AI Concerns 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
Insignia Financial Shares Hit 3-Year High Amid Bain and CC Capital Bidding War 
Why your retirement fund might soon include cryptocurrency 
China's Refining Industry Faces Major Shakeup Amid Challenges 
Home ownership is slipping out of reach. It’s time to rethink our fear of ‘forever renting’ 
Ferrari Group to Launch IPO in Amsterdam, Targets Over $1 Billion Valuation 
Do investment tax breaks work? A new study finds the evidence is ‘mixed at best’ 
Bitcoin Hits $100K Milestone Amid Optimism Over Trump Policies 
Chart - Courtesy Trading View
A rebound in the positive market sentiment has undermined demand for the US dollar.
On the data front, US PPI matched 0.8% MoM forecasts, also easing to 10.8% YoY figures versus 10.9% expected and prior readouts.
Further, core PPI (ex Food & Energy), dropped below 8.6% YoY forecasts to 8.3%, data released on Tuesday showed.
Further, markets remain cautious and refrain from placing any aggressive bets ahead of the Fed policy decision.
The Federal Reserve is expected to remain on the extremely hawkish side amid soaring inflation.
That said, signs of exhaustion were displayed by the US dollar index DXY, as clouds of uncertain Fed policy loom again.
Spot Analysis:
USD/JPY was trading 0.59% lower on the day at 134.66 at around 07:00 GMT.
Previous Week's High/ Low: 134.55/ 130.42
Previous Session's High/ Low: 135.47/ 133.87
Technical Analysis:
- USD/JPY has erased most of the previous session's gains
- Price action hovers around 5-DMA support
- GMMA indicator shows major and minor trend are bullish
- Volatility is high and momentum is bullish, but overbought oscillator warrant caution
Major Support and Resistance Levels:
Support - 133.23 (200H MA), Resistance - 136.67 (Upper BB)
Summary: USD/JPY trades with a bullish technical bias. Pullbacks on account of overbought conditions are likely to be shallow.
