FXstreet.com (London) - Tankan summary statistics have come in better-than-forecast earlier this session, suggesting that the BoJ efforts to revive the economy are working, to some degree. Large manufacturers showed improved sentiment, despite a strong Yen weighing on exports and damaging competitiveness. However labour forces and costs were continuing to be cut by larger firms, suggesting a cautious approach to the recovering economy.
USD/JPY has moved to the downside, currently quoting at 88.75 down over 50 pips from the open.
Valeria Bednarik, collaborator at FXStreet.com, thinks a bearish trend could be triggered if 88.80 support barrier is breached: the pair just breached this level as we write, and continues to slide currently trading at 88.75/9.
Support levels after this are at 88.40 and 88.10, and in the case of a Dollar rebound this session, resistance lies at 89.5 and 89.9. For more analysis, we highly recommend this technical report.