USD/JPY: supported at key 109.20 ahead of Draghi's speech

Currently, USD/JPY is trading at 109.23, down -0.29% on the day, having posted a daily high at 109.85 and low at 109.11.

USD/JPY dropped sharply on Yellen's speech, extending what was already looking like a negative close for the dollar today on the back of previous durable goods data missing expectations.

Yellen's speech failed to deliver a catalyst for market's today but was at odds with the Trump administration when it came down to the real subject matter that was expected from her. Deregulation was the theme of her rhetoric but not without caution in respect of the recent financial crisis. Nevertheless, the dollar was sold off and yields in the 10 years are down - 1.12% also at the time of writing. 

Yellen was a blank, so come on Draghi

Next up is Draghi's speech and while Yellen had not given off hints in respect of the Fed's future monetary policy,  Draghi might just surprise rather than simply stick to his catechism and repeat "patience, prudence, and persistence rhetoric.

USD/JPY levels

To the upside, and in a U-turn on today's price action so far, USD/JPY needs to get through 109.80 and the doble time resistance area ahead of the 110 handle. On the downside, a break below 108.80 opens 108.13 guarding the 107.49 July 2016 high, then 106.50, the 61.8% retracement of the move 2016-2017.