Forex Flash: USD/JPY resistance remains at 89.20/30 – Rabobank (Barcelona) - The yen continues its persistent weakness against its American counterpart on Friday, at the moment in its way to yesterday’s low at 89.34
Recent news regarding PM S.Abe unveiling a fiscal stimulus plan plus the imminent announce of a new and higher inflation target are combining to intensify the JPY weakness.

Jane Foley, Senior Currency Strategist at Rabobank, comments, “The Japanese authorities are very market aware and just as the announcement of a 1% BoJ inflation target last February accentuated a trend towards yen weakness which was triggered by the ECB’s LTRO, speculation of a 2% inflation is currently enhancing yen weakness which is akin to investors’ current appetite for yield. The USD/JPY89.20/30 area has providing some resistance this morning, though pullbacks are likely to be shallow”.