CORRECTION: USD/JPY selling persists thru 89.60; 89.40 new low of the day

FXstreet.com (Barcelona) - After early indications of over-stretched Yen positioning ahead of BoJ - more often than not results on profits taking - , combined with the logical view that much of what will yield tomorrow's BoJ policy action has been largely discounted by Yen traders - tends to lead to a 'sell the fact' scenario -, and talk of Chinese aircrafts and ships approaching disputed Senkaku Islands - negative for risk -, seem to have been the perfect storm sparkling a flight out of Yen shorts, with the USD/JPY hit hard to only find support at 89.40 (20-H4 EMA), a level which should hold for the interest of buyers, as noted by Valeria Bednarik, chef analyst at FXstreet.com. The area of support at 89.60 was taken out on the first attempt by sellers, implying inequality of forces dominating the price at current levels.

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