After reaching a 5 month low against dollar at 101.44, Japanese yen regain some of his safe haven status and returned to the 100.60 zone, where the pair has been hovering the past few hours. Japanese economic indicators continue to suggest that Japan may lag behind other countries in recovering from the global downturn, and so, Jpy recoveries should be quite limited. This Monday, BOJ said that it will provide the U.S. FED with up to 10 trillion yens in a liquidity swap agreement, aiming to help stabilize financial markets around the world.
From a technical perspective, the pair seems to have found support at the 100.51 zone, and remains consolidating between 100.50/100.90 zone. Clear break must be needed to see the pair gaining some momentum. To the downside, 100.20, a 4 hours ascendant trend line, will be the first support to consider, followed by 99.80 congestion zone. Above American session high at 100.93, next resistance lies at 110.20/30 zone.