FXstreet.com (Barcelona) - The USD/JPY has risen more than 190 pips today, reaching past Feb 17 high at 92.80 and taking 3-weeks high at 93.95 on U.S. session to levels not seen since early January, on a positive market reaction to U.S. attempts to revive economy.
Stocks are finally bouncing a bit in the American session after hitting 3-month lows. But gains remain limited as investors digested a bleak housing market report and President Obama's home rescue plan. US plan will help up to 9 million Americans refinance mortgages and avoid foreclosure.
However, financial woes keep dollar strong across the board and gold running high with Euro close to the 1.2520 support level, Swiss Franc above 1.1810 and Japanese Yen approaching to 94.00. Gbp holds steady around 1.4200.
The USD/CHF has taken positions above 1,1800, reaching a new bimonthly high, 1.1825, and pointing to the 1.1860/70 land as December 12th high. According to Valeria Bednarik, FXstreet.com Collaborator: Negative sentiment and gold prices raising as far as 970.00, finally send USD/CHF just above the critical level zone around 1.1770/80 and remains close to the 1.1800 pushing higher.
EUR/USD has broken below 1.2560 dropping to the lowest levels since Nov 21, at this point bearish pressure can take the cross to 1.2500, and below there 1.2425, Nov 20 low and 1.2328 (Oct 27 low).
On the side of the USD/JPY, today pair star, Tatsuya Kawanishi, FXstreet.com Junior Adviser, comment: It was been troubled economy driven by the appreciated Yen, worst Negative growth in GDP and yesterday finance minister resigned after the G7 meeting in Rome. Yet, Ahead of the BoJ meeting,later European session today Yen has declined across the board. USDJPY hit 6 week high while GBPJPY moved above 133.00 level. We carefully keep an eye open if this weak yen trend has been confirmed or not.