Fxstreet.com (Barcelona) - USD/JPY rose overnight to high of 100.70 but could not sustain gains as EUR/JPY selling started to weigh. The Rally came on the back of the Bank of Japan offering another Stimulus of Y350 Billion to aid the Financial Sectors, and this rallies the Nikkei to Test the 9000 Level causing the Yen Itself to Strengthen in Correlation. Similar to the Dow strength and the Dollar strength correlation despite the subtle risk appetite we are seeing now.
The actual Stimulus Plan itself was larger-than-expected, so the Nikkei strengthened on this Positive Sentiment further fueling the USD/JPY Unit.
Tim Salem, collaborator at FXstreet.com stated that the Yen corrects from the daily static resistance @ 100.72. Yen falls to the 100.20 Level where it now looks to 're-test' this same resistance in the immediate-term. He added.
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