FXstreet.com (London) - Nikkei gapped open 0.7%, despite the US posting only minor gains earlier today. Nikkei strength comes on the back of a weakened Yen bolstering exporter stocks in the index, including Sony.
USD/JPY is currently trading at 92.05, up 9 pips from the open, as the Yen continues to weaken into the Asian session. Market is rife with debate whether this signals the beginning of a long-term reversal for the Yen, which has been rising unabated throughout 2009.
For key technical levels Valeria Bednarik, collaborator at FXstreet.com, guides us: After breaking above 91.85 past week high, pair halted the rally just under 92.10 resistance area, unable to extend the rally due to low volumes ahead of holidays; however, pair manages to remain consolidating close to daily highs, suggesting bullish rally is not over: above 92.10, expect the pair to approach to 91.40 area, while corrective downside movements should remain capped above 91.30.