FXstreet.com (London) - Japanese Yen eased and consolidated after shedding during the previous session. A return to risk appetite after a raft of recent data all seemingly pointing to improved growth prospects for the global economy.
The Yen will likely trade softly in the run up to Chinese macro figures due in 20 minutes (0200GMT), the next key cue for price action. The Nikkei, currently up 1.2%, will also look to the forthcoming Chinese economic data, to support Chinese shares.
For USD/JPY we see the current trading range, and indeed primary levels for support and resistance as 88.31 and 88.45, as the pair currently trades at 88.42.
Valeria Bednarik, collaborator at FXstreet.com, comments on the charts: Japanese yen seems unable to extend the downside, with pair trapped in between 88.00 and 88.40 since past Asian session. Hourly charts indicators had turned slightly bearish, while bigger time frames show still some upside strength. Downside movements should remain above 88.00 support to avoid a clear bearish trend for the rest of the day. Under that zone, a retest of 87.70 seems likely for current session. Only above 88.50/60 resistance zone, pair could regain the upside an attempt a retest of the 89.00 level.