Forex Flash: EUR nets gains, while USD/JPY sees scope for 94.00 – UBS

FXstreet.com (Barcelona) - The euro continued its broad-based advance overnight in the wake of Thursday's upbeat ECB press conference last week. Ultimately, the EURUSD briefly traded through 1.3400, while the EURJPY broke 120.00, and the EURCHF hit a 13-month high. The ten big-figure rally in the USDJPY is exactly two months old today (it began the moment former-Prime Minister Noda declared his intention to dissolve the Lower House), yet it may still have a little further to run.

"True, levels implied by fundamental drivers (such as US yields) were left behind long ago, however the next BoJ policy decision is still over a week away and political pressure on the BoJ seems to mount with each passing day." Suggests Gareth Berry, a Research Analyst at UBS. Over the weekend Prime Minister Abe insisted that any new inflation target must be accompanied by a pledge to hit it over the medium-term (not the long-term). "The 90.00 level could present some psychological resistance, though our technical strategists see scope for an eventual move up towards 94.14." Berry predicts.