Forex: USD/JPY breaks 87.00 on US low tax rates extension (Barcelona) - The “risk on” sentiment today on the passing of the bill to extend low tax rates in the US over the next 10 years and avoid the infamous “fiscal cliff”did the trick on the USD/JPY to hit the 87.00 mark.

The pair kept on rising during the Asian shift and, not only reached the psychological level, but also surpassed it and printed its high at 87.33 by Asian closing time. Japan's stock exchange was closed for Bank Holiday.

“Closing above the 86.50 figure on Monday, the USDJPY pair looks ripe for an advance on the 88.00 round figure”, wrote independent analyst Richard Lee, pointing to downside potential in a break of the 84.50 round figure.