The yen rose during yesterday's trading following a lack of risk taking in the market as global equities were lower. The USD/JPY failed to make a breach of the resistance level at 92.00 and fell back to close the day at 91.57 after opening the day at 91.16. The GBP/JPY was higher at 132.63 from 131.54, while the EUR/JPY closed higher at 109.23 after opening the day at 108.44. The weakness in the yen versus the European currencies can be attributed to profit taking by traders closing short positions in these pairs.
The potential incoming Japanese Finance Minister, Yoshihiko Noda, who would be the 9th finance minister in 4 years, may be supportive of spending cuts in order to reduce the world's largest public debt. Noda would be the youngest finance minister to take the position, and a sizable task awaits him. The government's debt has ballooned to $9.7 trillion. Noda previously served as Japan's deputy finance minister.
The resistance line at 92.00 has served to cap appreciation for the yen and reduced risk taking in the market. This price level may continue to hold this pair's upward movement in check. The next support line for the USD/JPY rests at 91.00.