FXstreet.com (San Francisco) - The USD/JPY surge has broken sharply higher to trade above the 78.95 resistance zone and is now trading at fresh 4-week highs.
The move comes amid reports that the Bank of Japan will face more pressure to ease at its next meeting. The central bank is under pressure to meet its 1% inflation target, and government officials are under pressure to spur growth. Standard & Poor's has also just hit the newswires saying it has cut Cyprus’ rating to B from BB, and warns that further downgrades are possible.
USD/JPY has traded as high as 78.98 and is poised to record a fifth consecutive day of gains. The 200-day EMA is limiting rallies at this time, a break of which opens scope for a test of offers at 79.20. Immediate support is now noted at 78.26 (Oct 5 high).
The move comes amid reports that the Bank of Japan will face more pressure to ease at its next meeting. The central bank is under pressure to meet its 1% inflation target, and government officials are under pressure to spur growth. Standard & Poor's has also just hit the newswires saying it has cut Cyprus’ rating to B from BB, and warns that further downgrades are possible.
USD/JPY has traded as high as 78.98 and is poised to record a fifth consecutive day of gains. The 200-day EMA is limiting rallies at this time, a break of which opens scope for a test of offers at 79.20. Immediate support is now noted at 78.26 (Oct 5 high).
