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Forex pairs in this Article » USD/JPY
FXstreet.com (Edinburgh) - The dovish tone from Bernanke’s speech overnight keeps weighing on the USD/JPY, remaining unable to gather enough traction to return above the 100.00 handle.

USD/USD trimming Tuesday’s gains

The pair is now accelerating its intraday decline, as the selling interest continues to hover over the greenback. In the data front, the Japanese trade deficit exceeded forecasts during October (¥1.07 trillion vs. ¥0.88 trillion expected) while the All Industry Activity index rose 0.4% in September, missing the median at 0.5%, all pointing to a weaker Japanese yen. Greg Gibbs, FX Trading Strategist at RBS, noted, “The data should reinforce the recent weakening trend in JPY. While Bernanke may be keeping the USD from rallying much by emphasising low rates for longer, the developments in Japan suggest JPY may weaken anyway as its inflation expectations rise and external balance deteriorates”.

USD/JPY levels to consider

The pair is now losing 0.29% at 99.90 with the immediate support at 99.56 (low Nov.19) ahead of 99.20 (Tenkan Sen line) and then 99.14 (low Nov.14). On the upside, a surpass of 100.26 (high Nov.19) would aim for 100.39 (high Nov.18) and finally 100.43 (high Nov.15).
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