Forex: USD/JPY closing in on 80.00

FXstreet.com (Barcelona) - Having reached its high at 79.95 on the New York opening, the pair went right back down to be held by 79.80 on the announcement that the Eurogroup reached no deal on Greece despite progress.

Little after, the USDJPY climbed the chart again and is pressing to recover the 80.00 psychological level. The market is not very happy with the disappointing Chicago PMI in October, up from 49.7 to 49.9, but failing to reach the 51.0 consensus.

Yesterday, the BoJ kept the interest rate at 0.1%, but added Y11t to its asset purchase programme and started a new lending programme for banks. The statement said they will continue policy easing while the short term inflation target of 1% is not reached. Commerzbank analysts believe that might take a while.

"USDJPY despite a sharp downturn in early trading yesterday, the market managed to stabilise at the 79.25/10 support and we suspect a renewed attempt on 80.00 will be seen, we suspect we are going to see further consolidation near term", wrote Commerzbank analyst Karen Jones, expecting an eventual test of 78.72 trendline support.