Forex: Yen range trading, neutral in tight 10 pips range

By IBTimes Staff Reporter | December 28 2009 8:41 PM

FXstreet.com (London) - Nikkei has softly up just 0.10% in early trading, drifting to the upside as an echo of the bullish run global stock markets have made in the last weeks of this year. The major US markets closed with small gains in the previous session, and London enjoyed a bank holiday.

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Japanese Yen is of great importance to the exporting heavyweights of the Japanese economy and as such has a great effect on The Nikkei. USD/JPY is currently trading at 91.72, up just 2 points from the open. Bank of Japans cash injection to the market, has slowed the Yen recently , or at least the Yen has slowed at the same time. Pair trades in a tight range between 91.65 and 91.75.

For key technical levels Valeria Bednarik, collaborator at FXstreet.com, guides us: Favored by Wall Street, pair holds the bullish perspective despite still in a tight range. Hourly charts show indicators flat, with price above 20 SMA acting as dynamic support for the pair. Bigger time frames indicators are also flat, not giving clear clues; however, an acceleration above 91.85 highs area, likely to open doors for further upside runs in the pair, with 92.40 as next key level yo watch.

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