Forex: USD/JPY up to 87.50 on Reuters report

FXstreet.com (Barcelona) - Yen selling during Asian hours has brought the USDJPY back to the mid range of 87.00, after coming to as low as 86.86 by the US session close. Throughout the week, profit taking of the JPY has been strengthening the currency against the greenback (and others), which already pulled the pair below the 88.00 mark.

Reuters reported expectations of the announcement of a 2% inflation target and a pledge of more easing steps at the 21-22 BoJ meeting, as policymakers are pressured by new Prime Minister Shinzo Abe: "By accompanying the new target with more stimulus, the BOJ hopes to show its determination to get the country out of deflation and fend off more radical demands from politicians, such as a revision to the BOJ Law guaranteeing its independence in guiding monetary policy", says the article.

"It is correcting lower very near term, having halted just below major resistance - namely 89.30, its 30 year downtrend. This is regarded as a temporary halt in the bull move ahead of a move to 93.32 - the measurement higher of the triangle", wrote analyst Karen Jones, pointing also to the current bounce on cloud support located at 86.72/85.74.