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FXstreet.com (Barcelona) - The market went back to 88.00 levels for today's Asian session, with the upside capped at 88.22 high, as the Japanese Yen as sold off quite strongly during yesterday's trade in reaction to Fitch's warning of a rating downgrade to Japan due to its public debt. However, Prime Minister Shinzo Abe's government seems promises to take bold measures to dynamize Japan's economy and the BoJ is expected to announce some dovish decisions/plans at 21/22 January policy meeting.

The USD/JPY is currently consolidating the recent move, standing just below the highs while trading above the 88.00 psychological level.

"The USD/JPY continues to recover off its cloud support on the 240 minute chart, which is currently located at 87.00/86.15. This has under pinned the market since the 13th December and we suspect that the market is squaring up to a challenge of major resistance - namely 89.30, its 30 year downtrend", wrote Commerzbank analyst Karen Jones, pointing to support at 85.80 (23.6% retracement).

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