Forex Flash: USD/JPY with 90.25 as key in the coming sessions – TD Securities

FXstreet.com (Barcelona) - TD Securities analysts observed that "words have been stronger than actions for the JPY in recent months", and the same happened overnight as the "JPY sold off sharply on a number of comments from Japanese officials including one, most explicitly, suggesting that USDJPY at 100 would not be a concern", wrote analysts Shaun Osborne and Greg Moore, adding that a weaker than expected Japanese trade balance did not help either.

"USDJPY's squeeze higher has erased much of the move of the past two days, but has not yet tested the pre-Bank of Japan meeting high", they continued, pointing to 90.25 as key in the coming sessions "and a break above would reignite the constructive tone for the pair", or else, the USDJPY will trace out a clean head & shoulders with a neckline near 88.20/30.