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FXstreet.com (Barcelona) - The USD/JPY keeps falling today on IMF's spokesman Gerry Rice remarks, warning that the US government has to do better to put its public finances back on a sustainable path. Today's sentiment is affecting all riskier assets as financial markets take profits from the US fiscal cliff resolution rally.

In regard to the pair, the Yen is consolidating past week's losses made in antecipation to Japan's election of the new government headed by LDP's Shinzo Abe. The new Prime Minister plans to create strong stimulus packages and push the BoJ to target 2% inflation.

Market focus is changing from the US fiscal cliff to worries regarding the US debt ceilling. A wave of "risk off" sentiment showed up after IMF's spokesman Gerry Rice warning that the US government has to do better to put its public finances back on a sustainable path.

The USD/JPY has fallen to 86.81 low, and currently trades at its lows, risking further losses. "The break of the strong resistance at 85.53 (06/04/2011 high) opens the way for further long-term strength towards the key resistance at 94.99 (04/05/2010 high)", wrote MIG Bank analyst Bijoy Kar. "However, the general overbought conditions suggest that more attractive entry points are likely to present themselves in the future", Kar added, pointing to hourly supports at 86.96 (intraday low) and 86.53 (01/01/2013 low).

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