The highlight of US trade was the FOMC minutes, which were deemed more dovish. It seems many fed members felt there are many risks which would justify a later lift-off. However, some felt it might be appropriate to hike in the near term.
While the minutes were not all out dovish, positioning had been skewed to the hawkish side as investors felt the statement from the meeting suggested lift-off around the middle of the year. This resulted in the USD losing some ground against the majors but not quite as drastically as many would have thought.
USD/JPY was looking like it was well positioned to extend gains but pulled back on the back of the minutes. However, the uptrend support that has been in place since October managed to hold and prevented further falls. This support currently comes in at around ¥118.60 and, until we see a close below this level, the bulls will be eyeing a recovery.
As a result, some short-term traders could consider speculative buying in this region. On the calendar today we have Japan’s trade balance, all industries activity data and the BoJ monthly report. In the US we have unemployment claims and the Philly Fed manufacturing index.