FXstreet.com (London) - Dollar trading in Asian looks broadly flat with the excpetion of it Japanese trading partner, the Yen. Performance across the majors as follows: EUR/USD 1.4840/4 (+0.11%), USD/CHF 1.0185/6 (-0.10%), CABLE 1.6439/42 (-0.04%) and USD/JPY 89.06/7 (-0.48%). Soft trade ahead of cues from US and Europe later today over the state of the nations economy for those non-Yen Dollar partners.
Yen however has softened significantly in the face of a new economic stimulus package which includes 7.2 trillion Yen of spending to help alleviate the Japanese economy. BoJ had last week made clear its intention to control Yen strength, and this new package from the government will greatly aid sentiment over a Yen which was rising unabated and damaging the export economy.
Supported by solidified sentiment about the governments ability to temper Yen and deflation worries, both which were slowing economic recovery in the state, any concerns about the nations slipping into recession should be halted.
USD/YEN has traded up from day lows of 88.82, climbing to 89.07 and holding in this range, before recently drifting down to 88.97/9 at time of writing.
Valeria Bedarnik, collaborator at FXStreet.com, earlier reported the Fib retracements support and resistance barriers as follows: Support levels: 89.10 88.80 88.50 Resistance levels: 89.50 89.80 90.10, while some of these levels have already been breached the secondary levels still hold.