FXstreet.com (Barcelona) - The Yen is showing signs of fortitude in the first hour of the Tokyo open, abandoning new highs at 90.23 to suffer a 40 pips sharp retracement towards area of congestion 89.75, Jan 18 sequence of lows.

Both the Nikkei and the USDJPY have been taken to its day lows, in what looks to be anticipated 'selling the fact' ahead of the BoJ, overstretched short Yen positioning and the escalation in the China/Japan islands dispute.

Valeria Bednarik, chief analyst at FXstreet.com, sees the downside limited, with pullbacks to be interpreted as buying opportunities, as long as 89.40/60, which should attract buyers, holds.

"In bigger time frames, the upward momentum seems more healthy, supporting the shorter term view. 90.40 comes now at resistance for the short term, with 92.50 at sight this week" Valeria adds.