The new price for USDJPY is whistling at 113.4 around. After the dovish speech and FOMC minute, the movement in the pair is aligned with market theoretically. &nbsp;With the disclosure of the insufficient personal spending on consumables and property market. Greenback is bound to have a flip unless breaking news emerges on G20 summit. However, the effect would be limited.
Reviewing the overnight market of the greenback, PCE year-on-year is 2% equates to the last year while Core PCE is just below the expected level. 1.8% on the year-on-year basis is 0.1% below the estimation. &nbsp;Homes sales are stacked as the rate declined to -2.6% compared to the estimated 0.5%. Driving force with greater weight is the FOMC Minutes which sort of paraphrasing and elaborating the comments by Jerome Powell on Wednesday. Fed signalled they are going to adopt a more flexible approach in the rate hike after the almost-predetermined December hike. To maintain the winning streak of the economic growth, the interest rates should neither be aggressive nor conservative. The market can price the greenback on a lower basis now.&nbsp;
Friday also sees the coming of the G20 summit. Trump said he is very close to “doing something” with China ahead of a planned meeting with Xi. The officials of both parties have been working for weeks on drafting a possible deal for the two leaders to be declared on Saturday. From the retailer perspective, a binary contract to solve the tensions will vitally change the long-term value of the greenback.
On the hand of Japan, data is aimless overnight, Even though retail trade turns out to be way over expectation. The domestic labour market is just below the pass level. &nbsp;October unemployment rate 2.4% is 0.1% higher than consensus and applicants ratio slipped. &nbsp;Driven force is in USD hand.
Technically speaking, the pair is currently steady at 113.4 around, but the skewness is aiming downside. Moving patterns is now between the 20 SMA and 60 SMA. The price failed to overcome a 50% retracement level is now accumulating momentum to slip. Technical readings such as MACD and bull power saw the reverse of the early positivity. Bull power flipped to the negative territory which was positive last week. The short position should be taken on the 113.267 level.

FOMC reconfirmed the change of the projected rate hike

Dec 01 2020