The USD/JPY has come off of its four month high yesterday as the Yen strengthened against both the dollar and the Pound. The weakening of the pair may be attributed to technical selling, readjustment to asset manager's portfolios, and strength seen in equities.

The technical selling came at the resistance level of 93.19 and the pair now trades at 92.23. Year end adjustments to asset manager's portfolios helped the pair climb to a new high during the last week of trading, but at the start of the year, the pair has fallen from its high.

Also pushing the pair lower has been both higher equities in both Japan and in the U.S. Japanese equities are following the trend of American equities. In this morning's trading, the Nikkei 225 was up 0.7% while yesterday the Dow Jones Industrial Average climbed 1.5%.

A lack of economic data on the calendar from Japan may force traders to take their market cues from the U.S. Traders today will want to follow the Pending Home Sales release today. A better than expected result could take the USD/JPY back above the 93.25 level.

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