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Forex: USD/JPY retraces rally on Japan current account

By FXstreet.com,  January 11, 2013, 06:12:00 AM EDT

FXstreet.com (Barcelona) - The USD/JPY was trading at 88.90 just ahead of Japan's current account publication. 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 ¥10.3n stimulus package in Japan, triggered a rally to 89.35 high.

Overbought conditions triggered proft taking and the USD/JPY has been failing to hold above the 89.00 psychological level, finding support at 88.90 (pre-rally price).

"Corrective easing below 89.00 handle is seen on overbought near-term studies, with 88.40/00 zone seen as ideal levels to contain dips before bulls re-assert", wrote Windsor Brokers analyst Slobodan Drvenica, pointing to the loss of 86.81 (09 Jan low) to delay bulls.




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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