Forex: USD/JPY capped at 80.36

FXstreet.com (Barcelona) - The Japanese Yen keeps weakening as days go by, allowing the USD/JPY to breach above 80.00. The cross has reached as high as 80.36 right before the American opening, and after news of the downgrade from CCC to C of the Greek sovereign debt by Fitch.

Currently, the pair is trading around 80.23. UBS analysts report that a “senior official said there is nothing strange about USDJPY at 80, and the JPY weakening is due to the BoJ's timely easing and a better risk environment”.

“While we could see some corrective activity to unwind the recent advance the underlying tone remains positive following settlement above the 200 day MA, and we look for the 78.00/79.00 zone to act as support for further gains towards 82.23 (May 2011 high) ahead of 83.30”, writes MIG Bank analyst Ron William.

View the original article here