USD/JPY: opens with a better offered feel, on track to test 113 handle before 111.98?

Currently, USD/JPY is trading at 113.11, down -0.09% on the day, having posted a daily high at 113.46 and low at 113.11.

Finally, Wall Street and the Dow got there, 20,000 was done within minutes of the open

USD/JPY opened in Tokyo with a bearish bias, dropping a handful of pips to the downside in an extension of the bearish bias overnight with the dollar soft despite the rally on Wall Street and the Dow triggering the 20,000 mile stone as bears finally give into the renewed hype of the Trump trade due to some of the early indications that he indeed intends to put his pro-business plans and infrastructure in place at the earliest opportunity for the US economy. 

Market wrap: Sterling was the out-performer - Westpac

However, how offered can the dollar go in the wake of Trump's presidency and the US economy being the best house in a bad neighborhood in respect to rates in the rise? Overnight, US 10yr yields rose 6.3bp to 2.5283%. "The correction lower in yields late last year and into the new year appears to have run its course though the US 10yr still remains shy of the 2.6394% highs hit during the peak of “Trump euphoria” mid Dec 2016. German 10yr bund yields hit their highest levels in a year (0.473%, +5bp on the day)," explained analysts at Westpac. 
 
USD/JPY levels

"The market recently failed at the imuko 2 level, which today lies 115.56 and very near term we are unable to rule out losses to the 38.2% retracement at 111.98 area," argued analysts at Commerzbank.

Current price is 113.13, with resistance ahead at 113.15 (Weekly Low), 113.21 (Daily Open), 113.40 (Daily Classic PP), 113.46 (Daily High) and 113.50 (Hourly 20 EMA). Next support to the downside can be found at 113.11 (Daily Low), 113.04 (Yesterday's Low), 112.89 (Daily Classic S1), 112.83 (Weekly Classic S1) and 112.65 (Monthly Low).