Forex: USD/JPY losses the 82.00 figure

FXstreet.com (Barcelona) - The cross has penetrated the key support at 82.00 on Tuesday, extending its intraday downside since the double tops around 82.90 during November, against a backdrop of increasing demand for risk-associated assets.

In the data front, the Japanese monetary base has expanded 5.0% over the last twelve months, below expectations and prior print at +11.4% and +10.8%, respectively.

Jonathan Cavenagh, researcher at the Australian bank Westpac, argues "& the risks are for a downside correction in USDJPY in the period ahead. Rallies in USDJPY above 82.50 are likely to represent a good selling opportunity to position for a move back to the 79.00/80.00 region. The longer-term dynamics for JPY are clearly negative though, given the structural deterioration in the current account and the consistent underperformance of Japanese data momentum compared to the rest of the world. Hence any dips below the 80.00 level are still likely to generate medium term buying interest".

The cross is now losing 0.34% at 81.96 with the immediate support at 81.68 (low Nov.28) followed by 81.65 (low Nov.21) and finally 81.45 (high Nov.15).
On the other hand, a breakout of 82.26 (high Dec.4) would clear the way to 82.50 (high Dec.3) and then 82.75 (high Nov.30).