USD/JPY has overcome a series of hurdles in the 87.60/80 region and has broken into less crowded confines. With much of the market risk averse and looking for an 85 test, the rally is more about pain than gain. And forex markets love to inflict pain.
88.30 is next resistance of note for USD/JPY. Don’t be surprised to hear of exporter selling at 88.00 along the way. We trade now at 87.83 from 87.93 highs.
