FXstreet.com (Barcelona) - The Yen has continued with its advance against the Dollar sparked by the risk aversion today's Friday session. The USD/JPY has fallen around 140 pips form MA200 hourly chart at 91.30 to break MA55 hourly at 91.00, test 90.00 level and post 2-week low at 89.90.
Currently the pair is trading around 1.65% below today's opening price action at 91.45. Dollar has lost yesterday's gains to the Yen and is heading toward the first weekly decline after rising in the last four.
The FastBrokers Research Team comments: A selloff is taking place in the riskier FX pairs and the USD/JPY is following suit, telling us investors prefer the Yen over the Dollar as a safe haven right now. Today's strength in the Yen also stems from the BoJ's decision to end a couple of its bond purchasing programs in an effort to tighten liquidity. Today's monetary policy falls in line with the BoJ's more conservative stance since the DPJ took office. Furthermore, the BoJ was likely encouraged by the USD/JPY's recent solid performance above its important 90 threshold.