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Forex: USD/JPY back to challenge 30-year resistance line at 89.30

By FXstreet.com,  January 11, 2013, 09:54:00 AM EDT

FXstreet.com (Barcelona) - As the year starts, investors are taking more chances and buying risk against funding currencies such as the JPY, CHF and USD. That is too helping the USD/JPY to extend its rally, already moved by an intervening Japanese government and an "inevitable" BoJ stance.

Larger than expected current account deficit (actual ¥-222.4B in November, instead of expected ¥-3.5B), coupled with Prime Minister Abe's announcement of a ¥10.3B stimulus package in Japan, triggered Yen selling since early hours, up to 89.35 high. After some retracement back to 88.80, the NY sentiment has pushed the pair back to its highs. As of writing, the USD/JPY trades at 89.39 high.

Commerzbank analysts expected profit taking after reaching 89.30 (30-year resistance line): "It remains under pinned by its cloud support on the 240 minute chart, which is currently located at 87.56/86.54", wrote analyst Karen Jones.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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