FXstreet.com (Barcelona) - The Dollar's recovery against the Japanese Yen from 2-week low at 89.20 in the early Asian session has been capped at intra-day high at 90.30 and the USD/JPY has begun to fall to trade below 90.00 level, close to 89.80.

Currently the pair is trading around 89.85/95, 0.25% above today's opening price action at 89.67.

According to TJ Marta, analyst at The Overnight Express, the USD and JPY fell, likely as giveback from carry trade unwinds on Friday: Testing below 90. USD/JPY (89.93) is down overnight. Part of this stems from the decline in the US 10yr yield in recent session, as that correlates positively with USD/JPY. Resistance now lies at 90 (psychological), 92.32 (Oct27 high) and 92.53 (Sep21 high). Support lies at 89.20 (Nov2 low) and then 88.01 (Oct7 low). The correlation of USD/JPY with the US 10yr yield and the US-JP 10yr spread remain significant.

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