Forex: USD/JPY holds bullish scope toward 85.00 - FXWW

FXstreet.com (San Francisco) - The yen saw another round of heavy selling Wednesday, losing 1 percent against the US dollar to 82.50, on disappointing Japanese trade data and on expectation of further easing from the Bank of Japan.

USD/JPY’s advance has stalled just beneath a 78.6% Fibonacci resistance level at 82.65, and, according to Sean Lee, founder of FXWW, “USD/JPY has little in the way of technical resistance until 84.50/85.50 and with 3 weeks still to go before the Japanese general election, we could easily see these levels,” he comments. 81.85 is offered as immediate support (Mar 2 high), then 81.65 (Feb 27 high). “As Yen short positions grow, we will start to see much greater volatility so be prepared for sharp pullbacks from time to time,” says Mr. Lee.

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