FXstreet.com (London) - Nikkei is trading largely on Yen weakness today. The Japanese stock market is up over 110bps in early trade. The move has been precipitated by a weakening Yen, which greatly benefits exporter competitiveness and as such bottom lines.
USD/JPY is currently trading at 93.29, down around 20 pips on the session. Pair is off from 93.76 in the previous session and 93.66 in this session, around 4 month highs for the pair. Investor confidence rebounded from a dovish FOMC speech two days ago, as labour data came in positive in previous session.
For key technical levels Valeria Bednarik, collaborator at FXstreet.com, guides us: above 93.40 strong resistance now support area; pair has not only several daily/weekly highs and lows there, but also a descendant trend line coming from 101.43 past year high. Hourly indicators remain bullish as well as 4 hours ones suggesting any downside corrective movement should remain limited.