Forex: USD/JPY stretches higher as Japanese Fin Minister Fuji is replaced

  @ibtimes on January 06 2010 5:54 AM

FXstreet.com (Barcelona) - Dollar bounce from 91.22 low on Tuesday has extended above 92.15 resistance with the Dollar reaching 92.50 area as Japanese Prime Minister Hatoyama announces the replacement of Financial Minister Fuji with Kan.

The replacement of a well known pro yen strength figure such as Fuji could weigh on the Yen in mid and long term, says Valeria Bednarik, collaborator at FX street.com: Having been a pro yen -strength Minister the fact that Fujii resigns could well weight on the Japanese currency, and support current bearish bias both in the short and the long term. USD/JPY quotes around 92.45, having overcome 92.20 strong area.

On 4-hour charts, the yen is showing bullish signals, says Bednarik: 4 hours charts show a strong bullish momentum in the pair, so above next resistance level, around 92.70, pair likely extend current rally to the 93.15 area, past week highs. Above lies strong 93.40 resistance level weekly high.

On the downside, Bednarik points out to 92.20 as initial resistance, and below here, 91.80 and the 91.40 zone.

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