The yen continues to weaken against its major counterparts, nearing its lowest levels against the US dollar in 2010.
The 2010-high for the USD/JPY was made on January 8, when the pair reached 93.76. In trading today, the pair reached a high of 93.63, but has since fallen to the 93.40 level. Still, the USD/JPY is well-positioned for further gains and a number of hedge funds have established, or added to, positions in recent trading.
For a long position in the USD/JPY, look toward the 92.25 level as a point of support. As a daily close below this point could signal additional downside, a stop-loss around 92.00 would be best. With a daily close above the 2010 highs, the pair could easily revisit the 95.00 level, potentially reaching as high as 97.00 in the coming weeks.