USD/JPY down 70 pips from the highs
You hate to see a 10-week high that's followed by a reversal into negative territory on the day.
There are a couple flakey stories driving the moves today. The gain came on a jobs report that was skewed by weather, then it came back down partly because of worries the wages data were also skewed. Then it fell further on fear of North Korean long-range missile test.
Ultimately, USD/JPY is down 15 pips on the day and maybe that's where it should be but you have to see a fresh high followed by a reversal. On technicals alone it's a bad sign but I suspect the market will refocus on tax cuts at some point.
In the short term, the Fed's Dudley is slated to speak on monetary policy at 1615 GMT (12:15 pm ET). If he signals some newfound optimism, we could be right back to the highs.
Some recent headlines from Dudley:
- Dudley: Economy might be gathering strength a bit
- Fundamentals supporting expansion are quite favorable
- US economy in a pretty good place