The Japanese yen has edged higher for a second straight day. In the North American session, USD/JPY is trading at the 114.00 line.
In economic news, Japan releases December inflation data and the BoJ will publish the minutes of its December meeting. In the US, economic releases were mixed. Unemployment claims jumped to 287 thousand, above the forecast of 220 thousand and up from the previous release of 231 thousand. The Philly Fed Manufacturing Index rose to 23.2, up from 15.4 prior and above the consensus of 20.0 points.
Inflation in Japan is moving higher, although at a much more modest clip than is the case in the US or UK.
The USDJPY market is short term bearish and yesterday’s break leaves trade poised for follow through selloffs. A close under 113.48 warns for a wash towards the 113.03, when broken 112.57. Only a close over 114.78 stops the downturn.