FXstreet.com (Jakarta) - The USD/JPY rose to the highest level since November 4 and closed above the psychological important 100 handle. The Japanese economy is in its worst economic slump for decades with domestic and foreign demands plunging and business confidence at a record low.
We expect Japanese investors to move money abroad in search for higher returns, said Hans Nilsson, analyst at CMS Forex. Next week's release of the leading economic index is likely to indicate a continued deterioration in economic conditions in Japan.
The USD/JPY, having risen for the nine out of the last 10 weeks, is likely to continue its ascent. There are resistance in the 102 area and support in the 99 area.