FXstreet.com (Barcelona) - USD/JPY has capped its recovery from 89.60 after rejecting at 90.20 resistance level and pair been falling during the European session to break MA55 hourly chart at 89.75 and test 89.50 level. Currently the pair is trading around 89.55/65, 0.20% below today's opening price action.
Per-Erik Karlsson, analyst at Avantage Financial GMBH, comments: USDJPY: 88.00 is key support and while above this level we are looking for a move back toward the 93 level and as the repatriation flows back to Japan are done after the half year end closed yesterday, we expect JPY to struggle for the rest of the year.
According to the UFXBank Research team, Central Banks are moving its reserve currencies from USD to EUR and JPY and add in the technical view: The Yen weakened versus the Dollar and fell to a 2 week low versus the Euro as Risk Appetite grew on speculations good earnings reports will be released and lead to a rally in stocks. The Yearly M2 Money Stock came out 3% better than 2.9% forecast and 2.8% prior. Overall, USD/JPY traded with a low of 89.27 and with a high of 90.46. The Japanese Rate decision will be announced tonight and is expected to be held at 0.1%.