FXstreet.com (London) - Nikkei has levelled off in early trade, despite gapping open nearly 30 bps initially. Dollar has benefited today from a move in investor sentiment, as lower-than-expected housing data has prompted a move away from riskier asset classes.
USD/JPY is currently trading at 91.96, shifting sharply to the upside, having opened near the low of the day. Pair has gained around 40 pips, as Yen weakness and Dollar strength combine. Statistics from the IMM show net commercial shorts increasing and a general market move away from the Yen mid-term. However both Yen and Greenback were bought today as investors moved into safe haven assets.
For key technical levels Valeria Bednarik, collaborator at FXstreet.com, guides us: Pair rebounded at 91.15 after market acknowledged Japan Minister Fujii resigned mid afternoon Tuesday. Still looking bearish in the hourly chart, pair needs to break under 91.10 support to accelerate the fall, with a probable target for next session around 90.50. Only above 92.20 current bearish bias is deny, and pair could regain past week bullish trend..