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Forex pairs in this Article » EUR/JPY, USD/JPY (Barcelona) - The USDJPY resumed its upward trend overnight following the bullish comments out of Trade Minister Nishimura, which noted the USDJPY operating at the exchange rate of 100 would not be a problem. In his view, only a move upwards to the 110 - 120 range would have a detrimental economic impact due to the higher import costs this would induce.

In addition, news surrounding the meeting of the Japanese government's Council on Economic and Fiscal policy also reinvigorated the yen selling on unsubstantiated speculation that new yen negative policies might be announced afterwards, following a brief JPY rally yesterday that failed to make prolonged strides against its G-10 counterparts.

Overnight, Vice Finance Minister for International Affairs Nakao noted he was closely watching the yen's rebound (following the BoJ meeting) and would not hesitate to take action if needed. According to Research Analyst Gareth Berry at UBS, "A sudden increase in geo-political tensions on the Korea peninsula probably gave the USDJPY another push higher too, while stronger private sector China PMI briefly supported risk appetite, although mixed earnings reports out of the US provided a risk-negative counterbalance."

At the onset of American trading, the JPY has ceded substantial ground to both the USD and EUR. The USDJPY is trading at session highs in the region of 89.92, nearly the critical 90.00 barrier after securing an advance of +1.40% today, while the EURJPY is also peaking in these moments at 120.15.
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