Forex: USD/JPY back to 89.00 on profit taking

FXstreet.com (Barcelona) - The USD/JPY rally on the narrowing (seasonally adjusted) current account surplus in Japan (actual ¥225.94B in November, from ¥414.1B), found a new high at 89.35 in early Asian hours. NY opening flows led to another try at those levels, extending the move to 89.45.

However, as Commerzbank point to 89.30 as 30-year resistance line, the market may too be considering the price as a good level to take profits. At least for now, since the USD/JPY quickly fell back to the 89.00 handle.

In regard to the Japan current account issue, Commerzbank analyst Lutz Karpowitz explains why it is troubling: “Should the current account slide into the minus, Tokyo would be dependent on foreign investors and would probably have to pay higher interest for its gigantic national debt of more than 200 percent of GDP”.

“In my opinion, no corrections are expected. A predicted movement of the price is against any logic – growing up and consolidating only. The next consolidation may take place at the level of 90”, wrote Roboforex analyst Igor Sayadov.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS