Tokyo is open for the day at the start of the first full week for trading of 2013. Liquidity should return to normal this week in all time zones.

Weekend press saw more of the ‘Yen to weaken’ sort of stories we have come to expect. Interestingly, although the Yen has lost a little ground in the first few hours of the week, USD/JPY hasn’t run away to the topside. It looks as if the strong USD/JPY uptrend is finally running into a little resistance – Note thats its way to early to call it an end, but the price behaviour appears to be changing a little.

Levels to watch out for today:

Topside:

  • 88.35/45, ahead of more sellers at 88.50

Downside:

  • 87.75/85 bids
  • 87.50/55