Forex: USD/JPY: Dollar breaks above 90.70 and hits 91.05 high

Wed, Nov 4 2009, 11:47 GMT
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FXstreet.com (Barcelona) - The Pair has strengthened during European trading and, after bouncing at 90.00 support area, the Dollar has risen past 90.70 resistance to hit a fresh intra-week high at 91.05. At the moment, the Dollar trades at 90.80.

The pair stands at the moment at 90.80/90 resistance area, and above here, next resistance levels lie at 91.30 and 91.55/65 (30 and 29 Oct highs) On the downside, support levels lie at 89.85/90 (Nov 3 low), and below here, 89.40/55 and 89.15 (Nov 2 low).

According to the Markets Alert Team, The Yen is being pushed down by a combination of elements: " Finally, in actual trading, with the Japanese back from holiday, dealers are pushing prices higher, setting off stops at 90.80 and making a run at 91.00s. Also from a flows perspective, there is talk of Japanese pension funds on the bid in USD/JPY. Finally, anecdotal reports of good buying interest in JPY options into next year, but most interesting are the bets being placed for Fri, with 91.00 calls in good demand. M.B."

USD/JPY

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