FXstreet.com (London) - Nikkei has shed over 1.0% this session, weighed down by the profit taking, particularly in the banking sector. Global stock markets have risen spectacularly since March, boosted by a weak, down trending Greenback.
Asian markets took cues from a very bullish American session on the equities front, the Dow, NASDAQ and S+P all shed around 1.2% in the previous session. The Nikkei, can often move inversely to Yen, as a strong Yen weakens the competitively of Japanese exporters and their stock price suffers.
USD/JPY did strengthen initially off the open dropping 73 points from 89.66 to 88.93. However the pair has since corrected and consolidated just down form the open at 89.57.
Resistance for the pair can be found at 90.35 (Dec 17 High) and then 90.77 ( Dec 4 High), and James Chen of FX Solutions, believes a reversal could be indicated when the pair breaks its current channel: Any significant upside breakout above the parallel downtrend channel could indicate a potential trend reversal with an initial resistance target in the 92.00 price region.