Forex: USD/JPY edges higher as IMF revises global growth

FXstreet.com (Barcelona) - The USDJPY seems to have retraced all of its daily losses and was able to persue its highs, at 88.77. However, the pair remained capped at 88.66 session high after the NY opening. The greenback is growing stronger again against the Yen, bouncing since the 88.06 low printed ahead of the European session. Helping the mood is the just trimmed global growth forecast by the IMF, now at 3.5% in 2013 (from 3.6%) and 4.1% in 2014. The US should grow 2.0% and the Eurozone to contract 0.2% in 2013.

The US economic calendar is very light, but investors are mainly eyeing headlines coming from US politics. The IMF considered fiscal consolidation and reform as a global headwind, but both US economy and Eurozone financial conditions seem to be improving. Also, IMF economists welcome Japan's higher inflation target and ambitious goals.

"I think today the price may reach a local target at 88.20, grow up towards the level of 89.25 to test it from below, and then start a new ascending movement to break the target at 88.10", wrote Roboforex.com analyst Igor Sayadov.