Investing.com- The dollar was slightly higher against the Japanese
yen in Monday's Asian session, building on gains accrued over the
last few week.
In Asian trading Monday, USD/JPY was higher by 0.07% at 85.95.
USD/JPY hit 86.63 on Friday, the pair's highest since August 3,
2010; the pair subsequently consolidated at 85.88 by close of
trade, 1.93% higher for the week.
The pair is likely to find support at 85.21, Wednesday's low and
resistance at 86.63, Friday's high and a 28-month high.
The Japanese currency is cascading toward a 2012 performance that
will be its worst yearly run in seven years and one that will make
the yen the worst-performing of the major global currencies this
Elsewhere, EUR/JPY gained 0.08% to 113.67 while AUD/JPY climbed
0.31% to 89.36.
The yen had been under heavy pressure against its major rivals
prior to Japan's elections two weeks ago and that pressure has
intensified with Shinzo Abe's victory as the country's newest prime
minister. Abe has taken a sharp tone in his rhetoric regarding
inflation and monetary easing aimed suppressing the yen.
Abe has put the Bank of Japan on warning that the central bank
needs to get inline with his views on easing and inflation or risk
losing its independence. In media interviews today, BoJ Governor
Masaaki Shirakawa sounded a conciliatory tone, saying he wants to
see greater cooperation between the government and the central
BoJ may have not choice but to comply with Abe's easing and
inflation demands because recent Japanese economic data supports
more aggressive easing and a higher inflation target.
Official data released Friday showed that Japan's industrial output
fell by 1.7% in November, worse-than-expectations for a 0.5%
decline. A separate report showed that consumer prices fell 0.1% in
November from a year earlier.
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