USD/JPY: risks mounting to the downside below 114 handle and 55 4hr sma

Currently, USD/JPY is trading at 113.62, down -0.12% on the day, having posted a daily high at 114.00 and low at 113.04.

USD/JPY has met a double top and is bears are back on the defensive vrs a fragile dollar that is volatile on every move that Trump is making within the first full week of his presidency.

"The yen was rising on the back of stronger than expected trade data for December and its risk profile leaves it vulnerable to knee-jerk haven-driven gains in response to the broader tone of uncertainty. Headline risk is elevated, U.S. releases are limited, and options markets continue to fade much of the premium for protection against upside risk," explained analysts at Scotiabank.

USD/JPY levels

With spot trading at 113.62, we can see next resistance ahead at 113.77 (Daily Open), 113.91 (Yesterday's High), 113.94 (Hourly 200 SMA), 113.94 (Hourly 100 SMA) and 114.00 (Daily High). Support below can be found at 113.58 (Hourly 20 EMA), 113.40 (Daily Classic PP), 113.15 (Weekly Low), 113.04 (Daily Low) and 112.89 (Daily Classic S1).

WTI jumps to daily highs post-EIA, above $53.00 - a potetial for more downside in the dollar and bearish for USD/JPY.