Forex: USD/JPY remains in session lows, below 87.70

FXstreet.com (Barcelona) - The Japanese yen keeps the strong tone against the US dollar on Monday, partially retracing last week's gains, when the yen weakness led the cross to the vicinity of 88.40

"The USDJPY pair has taken flight over the past three months. However, the major problem with this trade is that too many investors have it on. Market participants cannot be too hasty in casting yen further adrift as aggressive Japanese policy easing is still not assured and many fear the US fiscal deal could lead to the slowing down of global economies. Global risk sentiment changes with the wind. The declining of global tensions is making the yen unattractive", comments Dean Popplewell, Chief Currency Strategist at OANDA.

The cross is down 0.49% at 87.68 with the next support at 87.58 (hourly cloud base) ahead of 87.26 (low Jan.4) and then the psychological level at 87.00
On the upside, a break above 88.38 (high Jan.7) would expose 88.48 (2013 high Jan.4) and finally 88.52 (50% of 2009-2011 drop).