Forex: USD/JPY tumbles and erases Friday gains
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USD/JPY
FXstreet.com (Barcelona) - After coming two pips short from the 84.00 psychological level during the Asian session, the USDJPY began a period of consolidation throughout European hours which sent the pair to 83.64 low, erasing Friday's gains. After a renewed upside run, the market tumbled back to the opening price area.
Much movement is expected for today as investors trade ahead of the Japanese general election due on Sunday, with expectations that a win of the LDP party, headed by Shinzo Abe, would provoke a strong fiscal and monetary intervention by the new government and the Bank of Japan.
"The break above the critical 82.80 set uptrend in the pair. The next target is the resistance at 84.20", wrote Deltastock.com analyst Stoyan Mihaylov, adding that failed breakthrough could lead to new range movement in the area 83.20 - 84.20.
Much movement is expected for today as investors trade ahead of the Japanese general election due on Sunday, with expectations that a win of the LDP party, headed by Shinzo Abe, would provoke a strong fiscal and monetary intervention by the new government and the Bank of Japan.
"The break above the critical 82.80 set uptrend in the pair. The next target is the resistance at 84.20", wrote Deltastock.com analyst Stoyan Mihaylov, adding that failed breakthrough could lead to new range movement in the area 83.20 - 84.20.
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