FXstreet.com (London) - USD/JPY has shed 0.8% thus far in Asian session, as fallout from the Tankan survey hit the market. Investor sentiment has been mixed between a positive manufacture sentiment and not so positive capital expenditure, as businesses continued cutting jobs and costs.

Dubai are expected to default on a $3.25 million bond today, and as such market sentiment is swayed to risk aversion. As market players move funds from risky assets to safer lower-yielding assets, Yen comes into favour as a safe haven asset. We attribute this as the causal factor to the movements in the the Dollar Yen pair today.

Pair currently quoting at 88.53/9, with primary resistance level at 88.85 (consolidation zone earlier in session) and support on the downside as 88.20 (strong support level from Dec 10).