USD/JPY has put in the dreaded outside day reversal after making a new trend low at 94.52 overnight as swine flu fears gripped Tokyo, only to shoot higher on Japanese jawboning as well as a rise in risk-taking. The move through the highs of the prior two sessions at 96.10 and 20 prompted many disgusted USD shorts to throw in the proverbial towel and cover positions.
Next resistance for the greenback is the 96.64 level where the trendline broken last Wednesday (on the downside) should provide some resistance on rebounds.
