FXstreet.com (London) - USD/JPY has traded choppy this session, oscillating across large ranges, up to 70 pips as the market finds its level, ahead of US trade balance later today. Market will eye this as next key litmus test of state of the US economies recovery. Pair currently trades at 92.22, up 12 pips on the session.
Yen weakness seems to have paused despite the new Financial Ministers statement last week calling for a weaker Yen. General trend for this session and indeed throughout the previous US session has been one of USD strength and JPY weakness. For support and resistance use the bounds of the current range as primary signals; 92.30 and 92.10. Take these levels as primary resistance and support.
Despite Yen trading relatively soft, Nikkei has held gains, prompting speculation on which market players could be buying. One market commentator suggests pension fund reallocating for 2010 strategies.
For key technical levels Valeria Bednarik, collaborator at FXstreet.com, guides us: Downside movement extended to 91.80 intraday low, rebounding to current zone. With the upside limited by stocks, only a strong positive rally in Nikkei, not seen at this point, pair could break above 92.40 resistance area and extend the upside. Under 91.80 expect a retest of the 91.40 area ahead of 91.10 support.