Forex: USD/JPY rises fast, testing 95.50/60 resistance

Fri, Mar 20 2009, 11:02 GMT
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FXstreet.com (Barcelona) - The USD has risen from 94.49 to 95.70 in the last hour in a quick spike of around 120 pips. Currently, the pair is testing 95.50/60 resistance level.

Along the European morning, the USD/JPY has risen around 150 pips from the 94.13 bottom, intraday low, to 95.70, today's high.

According to Tatsuya Kawanishi, Junior Adviser at FXstreet.com, The situation has become in a state of uncertainty where investors look for resource values: "USD/JPY would rise further after the start of the new fiscal year on April. Nikkei Ave is still struggling at a low level though, USD/JPY 100 level could be seen in the mid term."

Next resistance levels could be at 95.60, 95.84 and 96.35. On the Downside, back to 94.84 could be support, below there, 94.44 and 94.10.

Valeria Bednarik, FXstreet.com Collaborator, says that profit taking could support the USD increases: "In a very fast movement, majors are falling more than 100 pips against dollar. Probably some profit taking and the due corrections trend needs to continue. Watch the 1.3500 level for Euro, the 95.50 zone for Japanese yen, and the 1.4330/50 zone for GBP. If broken, longer term stops could be trigger and send dollar further up."

USD/JPY

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