FXstreet.com (Barcelona) - Having hit the important psychological level at 80.00, the USD/JPY is consolidating past gains as expected, printing a low at 79.71, but trading mostly above the 79.00 line. The market trades with a 'risk off' bias after Moody's downgrade of five Spanish regions. Investors seem to ignore reports speculating about an extension of the asset purchases by the Fed at this week's meeting.
Yesterday's Japanese trade data showed concerning signs of slumping exports, triggering reactions from BoJ and governent leaders. The market is pricing in the growing expectations of more policy easing.
“We may see some consolidation here (80.00) but then look for further gains towards 80.63, the June high”, wrote Commerzbank analyst Karen Jones
, pointing to support at 78.39.