FXstreet.com (Buenos Aires) - After hitting a fresh 5 month high past Asian session at 93.76, reaching that way the daily 200 SMA, pair started losing ground supported by Japan's new finance minister, that toned down his rhetoric about a weaker domestic currency, cooling speculation that Tokyo might act to push its currency higher if necessary; pair has lost the 93.00 area after U.S. data, falling to an intraday low of 92.27.
Pair however, seems to have stabilized around the 92.50 level, where it has been consolidating for the past couple of hours despite other majors rallies. Japanese yen however, remains bullish biased as Nicole Elliot, from Mizuho Corporate Bank comments: December's rally from critical support at 85.00 (November low 84.82) has been far stronger than we had expected yet is undoubtedly corrective. Perhaps we should have expected this in terribly thin year-end markets with twitchy authorities eyeing key support. The series of lower highs has not been broken despite retracing 50% of last year's decline and all aspects of the weekly Ichimoku 'cloud' chart suggest a short USD position against the Yen. Therefore we shall expect a new interim high to form early this month, dragging prices back down to 89.00/88.50. A weekly close above 94.00 would cause us to review.