FXstreet.com (Córdoba) - The Dollar is moving sideways against the Yen on Monday. USD/JPY trades a few pips below 90.00, near the same prices it had at the beginning of the day. On the upside the pair could face resistance at 90.05 and above at 90.25 (intra-day high). Support could be located at 89.70 (intra-day low) and below at 89.40.
Michael J. Malpede, analyst at Easy Forex affirms: The size of Japan's foreign reserves holdings could become an issue if Japan becomes concerned about the outlook for US deficit. Current data suggest that the Japanese government has not yet moved to significantly diversify USD reserve holdings. Chinese diversification of reserves may reemerge as an issue for the Forex trade. Sunday, China's Premier Wen called on the US to keep its deficit under control to stabilize the USD exchange rate. Bloomberg reports that Japan now tops China as the best buyer of US treasuries.