Forex: USD/JPY extends gains to 87.88 on NY opening

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FXstreet.com (Barcelona) - New York opening flows triggered a rally that surpassed the European session high of 87.74 and printed a new daily high at 87.88. The US economic calendar is practically empty, but traders are reacting to Fitch's warning of a downgrade to Japan due to its public debt. Also, Japanese leaders continue to announce their intentions of moving the inflation target to 2%, among other measures.

The BoJ will be announcing its monetary policy decision at the 21/22 January meeting and investors are mostly expecting a very dovish stance as members get pressured by Prime Minister Shinzo Abe's government.

"The lift in USD/JPY, however, can still be viewed as within the consolidation theme so far. A rise above yesterday's high of 87.81 would be more significant (marking an outside range day), suggesting more JPY weakness in the coming days", wrote analysts Shaun Osborne and Greg Moore, finding a retracement of the three month upside possible while below 87.81.



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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