USD/JPY rebound from below 142 is not yet convincing

Much earlier today, at the start of the Asian session, the USD/JPY slid below the 142 handle for the first time this week. It may have been partly driven by interim stops below 142, but that cannot be confirmed here. The low seen was set at 141.87. It has since rebounded back to 142.54, but that rebound has since given way to some fresh downside. The USD/JPY also closed below its 200 day moving average last night, at 142.12. That moving average is in place this morning at 142.77. So, as things currently stand, it is going to require another concerted push higher, to avoid a similar fate for the weekly close tonight. To be honest I am not so convinced on that right now, but the US PCE report (at 1.30pm GMT) could be the data that decides if that will happen, or not. This is the final big release from the US ahead of Christmas and could decide how the dollar trades heading into the New Year too, especially during the Twilight zone next week. There will be more to add on all this later today. Meanwhile, the USD/JPY is currently trading at 142.23