FXstreet.com (Jakarta) - The USD/JPY fell sharply on surging risk aversion. The Japanese government downgraded Japan's growth outlook and Larry Summers warned that the US economy will continue to deteriorate with sharp declines in employment for quite some time.
The stock market took Summers' warning in stride and the Dow fell 51 points to 8,025. After breaking its uptrend last week, the USD/JPY is trading in a downward sloping trading channel. There are resistance at the 98-handle and support from the lower trading band at the 96-handle, said Hans Nilsson, analyst at CMS Forex.
For more information, read our latest forex news.