FXstreet.com (Barcelona) - Dollar has fallen further against the Yen today's Friday session with the pair dropping around 110 pips from 91.77 intra-day high at the Asian session to 90.65 in the European session. Currently the pair is trading around 90.80/90 in consolidation mode after the last bearish movement.
Nicole Elliot, analyst at Mizuho Corporate Bank, expects pair falling below 90.00 field and recommends Sell at 91.15, adding to 92.25; stop above 93.35: Bearish momentum increasing on the break below 91.50, where a weekly close below here should help prices along the way towards January's low at 87.10. The authorities will probably become increasingly frantic as we move towards here and key ultra-long term support around 85.00. Inexperienced politicians will not make the job any easier.
Richard Lee, analyst at Online Forex Trading, ask him about the Yen buying momentum: Since hitting a 101.50 low back in March, the Japanese Yen has rallied sharply over the last five months against the U.S. dollar. Now trading just a haircut above 91.00, some in the market are questioning whether there is more gasoline in the tank for the currency to move further in the coming months. Fundamentals point to a resounding yes following tonight's economic growth figures. Expected to have been in recovery mode since before August, it seems that facts have surfaced negating the optimism previously hoped for.
Lee concludes: During the campaign, the DPJ party continued to make promises of further economic stimulus through cash handouts and infrastructure spending to boost general consumption without the heavy hand of debt issuance. If the reigning party is able to revive the country's outlook, it may be just enough to curtail any further USDJPY shorting as risk momentum on growth expectations continue.