FXstreet.com (Barcelona) - The USD is falling against the JPY after be rejected by the 97.30 resistance level and falls below the 97.00 level. Currently the pair is trading around the 96.65/75.
After falls around 65 pips from 97.31 to 96.65, the USD/JPY is back below the 97.00 level. Next support levels: 96.28 96.00 95.50. Next resistance levels: 96.90 97.38 97.70.
Valeria Bednarik, FXstreet.com Collaborator, says the USD/JPY is tending bullish: Tending bullish, the pair has founded first resistance at the 200 EMA. Slightly overbought, CCI is pointing to some downside correction as long as the mentioned EMA remains unbroken. 20 SMA and momentum support further upside bias for the next hours, yet 96.90 will be the key level to consider.
On the other hand, according to Michael Malpede, Analyst at Easy Forex, the JPY is lower, manufacturing confidence falls to a record low, risk sentiment improves: USD and JPY traded lower pressured by improving risk sentiment and stronger global equities sparked by news that the US plans to buy toxic banks assets. Treasury Secretary Geithner announced the Public-Private Investment Program (PPIP) to dispose of US toxic assets. The Treasury plans to invest OF tarp capital in 75-100 Billion of toxic bank assets and create a separate asset financing program through the FDIC. The total bank rescue plan is expected to total 500 Billion to 1 Trillion USD leveraged by help from private investors. Treasury Secretary Geithner said that the US needs private sector help for PPIP. It's difficult to gauge the amount of interest from the private sector in purchasing the toxic bank assets but the private sector will likely help the government determine a fair price for the purchase of the assets.