Forex: Yen softening continues, USD/JPY trading up 91.36/8

 @ibtimes
on December 21 2009 8:22 PM

FXstreet.com (London) - Nikkei has traded up so far this session, following on from a bullish US session. The three major US stock markets all finished up, with the NASDAQ notably hitting 15 month highs. Equities markets were buoyed by continued investor confidence and the passing of the new health bill by Senate earlier today.

Japanese Yen is strongly tied to the Nikkei, typically Yen weakness will help strengthen local equity markets. Large importers trading on Asian stock markets are adversely affected by Yen strength which damages competitiveness.

The pair is currently trading at 91.36/8 against the Dollar, 30 points up from the open. USD/JPY, trading at 6 ½ week highs as we write, Yen weakness will come as a relief to the central bank, BoJ, who are tasked with controlling the very real risk of deflation in the heavily export dependent state.

For key technical levels Valeria Bednarik, collaborator at FXstreet.com, guides us: Above 91.30, next resistance comes at the 91.65 area, ahead of strong 92.00. Break under 90.20 support seems unlikely at current levels, as bigger time frames support the bullish bias, as pair started the day above 100 SMA in the daily chart.

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