Forex: USD/JPY testing the 87.00 level

FXstreet.com (Barcelona) - The USDJPY has finally stopped surging, ultimately topping out at 87.39 today (intraday maximum), before surrendering the 87.00 level, where it is currently testing. As the reality of the US agreement sets in, along with a trickle of US data earlier this afternoon, investors are clearly not showing love for the pair, given its -0.41% decline during American trading.

In the United States, the ISM New York Index (December) was reported at 54.3, relative to a figure of 52.5 in November. Later today at 19:00 GMT, the FOMC minutes will certainly draw the attention of market participants as well.

The USDJPY has been very bullish since September 2012. "There have been rarely any significant corrections against this trend that went from about 77.10 to now 87.34. As we begin the first stages of the US session, we see that the USDJPY is starting the year stalling here. Falling under 87.00, it also shows some topping with momentum lost as the 1H RSI falls below 40." writes Fan Yang at FX Times.

Technically speaking, ICN.com analysts point to supports at 86.85, then 86.45, onto 86.00. In the event of a retracement or recovery movement, the USDJPY is slated for resistive correction at 87.15, then 87.45, and ultimately 87.65.