Forex: USD/JPY in session lows around 90.40
Forex pairs in this Article »
USD/JPY
FXstreet.com (Barcelona) - The Japanese yen continues its appreciation against its American counterpart on Tuesday, dragging the cross to the area around 90.40 from yesterday's highs in the vicinity of 91.30
"At present the yen weakening move is more likely to be seen as a correction of the yen's overvaluation with safe haven demand easing as confidence has returned in the euro. At the margin it creates more scope for yen weakness in the near-term although according to our long-term valuation models the yen's overvaluation correction appears almost complete", explains Lee Hardman, Currency Analyst at BTMU.
At the moment, USDJPY is down 0.45% at 90.43 with the immediate support lying at 90.29 (low Jan.25) followed by 89.78 (MA10d) and then 89.64 (Tenkan-Sen line).
On the flip side, a breakout of 91.32 (high Jan.28) would aim for 91.36 (Upper Bollinger) and then 91.46 (61.8% of 2009-2011 drop).
"At present the yen weakening move is more likely to be seen as a correction of the yen's overvaluation with safe haven demand easing as confidence has returned in the euro. At the margin it creates more scope for yen weakness in the near-term although according to our long-term valuation models the yen's overvaluation correction appears almost complete", explains Lee Hardman, Currency Analyst at BTMU.
At the moment, USDJPY is down 0.45% at 90.43 with the immediate support lying at 90.29 (low Jan.25) followed by 89.78 (MA10d) and then 89.64 (Tenkan-Sen line).
On the flip side, a breakout of 91.32 (high Jan.28) would aim for 91.36 (Upper Bollinger) and then 91.46 (61.8% of 2009-2011 drop).
Free Annual Reports
