Yen selling off as Shangai Composite explodes higher

FXstreet.com (Barcelona) - The Japanese Yen is going through a severe round of selling on comments from BOJ Nishimura, stating the bank will continue to pursue powerful monetary easing by deploying new measures, while he also highlghted econonimc downside risks. Core CPI will approach 1% two years from now, he added.

The USD/JPY has spiked higher from 81.70 reliable support, low from nov 28, and is now printing session highs just above 82.15. The vigorous bounce off mentioned layer of bids confirms this market aims at producing a typical consolidation box between 81.70 and 82.75, indication that the bullish tendencies may be poised to resume upon clear break of the latter.

Meanwhile, China's Shanghai Composite has soared over 2% in no time to currently stay back above 2000. According to CNBC World, rumour has it that the Chinese government plans to launch a new stimulative package to bolster the economy. AUD/USD is tracking Chinese gains higher too, presently at 1.0475 from 1.0465 low.

According to Chris Weston, Chief Market Strategist at IG Markets Australia, "there is talk about policy reforms in China next week that could target GDP above 7.5% in 2013..."

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