FXstreet.com (Barcelona) - The Greenback is recovering ground against the Yen in the last day of the week and after bouncing at MA55 hourly chart level at 88.60, USD/JPY has jumped during the American Session to hit 89.85 as fresh intra-day high. Currently the pair is trading around 1.60% above today's opening price action at 88.38.
Valeria Bednarik, FXstreet.com collaborator, comments: Japanese yen also strongly bearish, seems to have based around 88.00; clear sign of such bottoming needs a movement above 90.40 area, to confirm midterm upside corrections. With unemployment expected to keep worsening, more steps will be needed there, so strength should remain limited in the Asian currency.
The FastBrokers Research Team comments: The USD/JPY's near-term path will rely upon the combination of important econ data next week, Q3 earnings reports and outlooks, and the BoJ's monetary policy decision on Tuesday. Volatility should increase considerably before Tuesday's meeting since great uncertainty surrounds the true monetary stance of the BoJ. Tuesday's decision will be the first under the leadership of Minister Fujii. Though we don't expect the BoJ to alter its monetary policy on Tuesday, investors will carefully analyze Fujii's comments. Investors will look to see if Fujii reveals whether the BoJ is comfortable with the Yen appreciating further and if/when the central bank would intervene to defend exporters.
FastBrokers sharing us with its levels: Present Price: 89.33. Resistances: 89.45, 89.68, 89.82, 89.97, 90.21, 90.43. Supports: 89.16, 88.91, 88.63, 88.43, 88.16, 88.00. Psychological: 90, 2009 and 2008 lows.