Forex: USD/JPY just spiked a bit; approaching 84.00

FXstreet.com (San Francisco) - USDJPY is trading at fresh 9-month highs this afternoon in Asia, having just tested offers through 83.91 as market participants continue to short JPY in anticipation of an LPD victory in the Japanese elections this Sunday. Weak Tankan data reported earlier today is supporting the case for yen weakness in 2013. Spot has climbed to new levels not seen since March 21st, and, should the market manage to extend gains above the 84.00 figure, next bullish target lies at 84.15 (Mar 15 high), then 84.50 (Dec 2010 high) and 85.50 (April 2011 high). The down side offers support at 83.35 (Mar 27 high), 82.80 (Nov 22 high) and 82.65 (Mar 9 high).

Ian Copsey, Market Analyst at Harmonic Elliott Wave explains in a research note: "Since we're mid-way in a rally and even the larger target at 84.80 will require a correction on the way I'd rather suggest holding off and looking for the current rally to confirm. Basically this needs first to push above 83.80-83 but stall below 84.17 for a correction lower. If this earlier move is seen followed by a correction to around 83.50-70 we should then see the extension above 84.17 to reach 84.76-80."

Regional share markets are trading with a positive bias today. Japan's Nikkei is currently up 0.4% at 9,779.50. Australian shares are up 0.3% at 4,594.90 and the Hang Sen is up 0.6% at 22,584.00.