Broad-based USD weakness extends to USD/JPY today, a divergence from the usual pattern in which the dollar and yen move in lockstep. Equity markets are falling as the Yen strengthens, so that correlation remains intact.
90.90 is the low for the trend in USD/JPY, made in late-October as credit markets went through their most severe spasm. The JPY remains strong despite recent jawboning from Japansese authorities suggesting intervention could be employed if yen strength is seen impacting the economy.
91.00 barriers are rumored on dips while large stops are seen in the 90.75/80 region.
