The USD/JPY appears to have dug itself out of the downtrend it’s been stuck in.

Key support at 110.00 seems to have done the trick, after days of weakness in the USD that took its toll on the currency.

The Yen put in a double bottom on the hourly chart and price is gaining ground in Asian trade.

The Nikkei is also higher today, currently up 0.5% after an afternoon spike to the upside.

The USD/JPY is currently testing minor resistance at 110.693 and if it can break higher, traders should start looking for a test of the all important 111.000 level.

Data

Earlier Japan’s Monetary Base came in slightly below expectations at 15.6% (vs 16.6% expected).

BOJ member Funo, who spoke today, called for structural reforms to help boost inflation. As it stands, Funo claims the current level of inflation is halfway towards their 2% target.