Forex: USD/JPY trading near session highs at 86.16/19

FXstreet.com (Barcelona) - The USDJPY has started the week on the move once again, this time storming ahead a steadfast +0.41% above its opening. After regaining the 86.00 level Monday, the pair is now trading near its established daily maximum at 86.16/19 during European trading.

Positioning in the JPY, of late far and away the most active currency traded on the IMM, was little changed last week, the net short positioning reducing from 89.2k in the week ended December 18 to -85.6k in the week through December 24. "It is likely that the coming week's data will show that the net short positioning ramped up again, given that the USDJPY rallied from below Y85 to above Y86 in the current IMM trading week, though it is still likely to be the case that short yen positioning remains well below the 188k extreme and previous record recorded in June 2007." notes the NAB Research Team.

According to Gareth Berry, a Research Analyst at UBS, the USDJPY is bullish, however the immediate risk is for a correction in the near-term. Important support lies at 85.58/25, while resistance is at 86.64 ahead of 88.12.