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20/01/2017 17:56

USD/JPY pair struggles to build on to its recovery

The USD/JPY pair struggled to build on to its recovery move and has now retreated around 40-pips from session peak. Currently hovering around 115.00 psychological mark, the pair lacked follow through buying interest as investors continue to reposition themselves ahead of the key event risk, Donald Trump’s inauguration speech, which would set the course for the US Dollar's medium-term trajectory. Meanwhile, hawkish comments from Philadelphia Fed President Patrick Harker, that three rate-hikes seem appropriate in 2017 and that US inflation would hit the central bank's 2% target this year or in 2018, helped the pair to hold in positive territory for the third consecutive session. Nevertheless, the pair seems all set to snap four consecutive weeks of losing streak and post first weekly gain in 2017, unless Trump fails to deliver on the promised fiscal policies.