Forex: USD/JPY around 89.50, at multi-year highs

FXstreet.com (San Francisco) - USDJPY now stands at 89.45 after bouncing from the 86.75 base set last week and after printing a third day of higher highs and higher lows. Spot extended as high as 89.65 in overnight trade, levels not seen since June 2010. "With 90.00 still at sight, a break above this last should favor a continuation towards 92.50 area this week," says Valeria Bednarik, Chief Analyst at FXstreet.com.

Distance between the diverging moving averages on the daily timeframe is widening, indicating that bullish trend momentum is well supported. Beyond the 90 handle, next bullish target lies at 90.30. If bears regain the downside, Bednarik identifies support levels at 89.30, 89.00 and 88.70.