USD/JPY has absorbed large offers at the 91.00 level and has rallied as far as 91.15 so far. There is a minor resistance level at that level but nothing too significant. A break targets a push up to the 92.25/90 area in the next few days.
Firmer US yields are supporting the greenback today while downward pressure on EUR/JPY has been moderate today. Dovish comments from the BOJ’s Shirakawa earlier in the session are helping undermine the JPY. The Governor expects deflation in early 2010 and says stands ready to counteract it.
