After bouncing from just in front of the 50% retracement of the 84.84/93.78 at 89.30 this morning (89.35 was the EBS low), USD/JPY has made a solid rebound within its recent range but is holding below key resistance in the 89.77/80 area. Offers remain in the 89.75 region but stops are cluster around the 89.85 level if the rebound can garner any follow-through.
Risk appetites have improved during the US session as Bernanke’s confirmation now looks likely. China jitters were less palpable in New York today as most had expected reserve requirements to be upped and lending crimped by major Chinese banks after announcements to that effect last week. That has helped JPY crosses to climb from the lows seen early in the day.
