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Tuesday, December 1, 2009

USD/JPY tests support at 86.55

Greenback has lost most of the gains against the Yen. USD/JPY is testing levels below a support at 86.55, if it falls below, the Yen could gain momentum. The pair declined more a hundred pips from intra-day highs to current levels at 86.51/55, that lie 0.19% above today’s opening price. Immediate support lies at 86.40 and below at 86.15 and 85.85. To the upside resistance levels lie at 87.05/87.10 and above at 87.50 session high, and 88.00 (Oct 7 low).

Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, comments on a wider view: “Through to year-end, amid generalised US dollar weakness, the Yen is expected to outperform other currencies so that Yen crosses drop towards January’s lows. If we are correct then USD/JPY will see a series of lower highs between now and March 2010, and lower lows, taking it down to 83.00 and probably the all-time low of 79.75 some time in Q1.”

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