Forex: USD/JPY holding steady around 94.00

The Japanese yen is back to the proximities of the key resistance at 94.00 against the buck on Monday, as markets remain unbiased so far. The cross keeps trading in a narrow range, as an empty docket in the euro area plus the holiday in the US markets are leaving the cross to follow the risk trends.

“The next key yen event will be the appointment of the new Bank of Japan governor. This may trigger some volatility in the market but, given that the Japanese economy contracted during Q4 and that the GDP deflator showed -0.6% y/y, we expect the Bank of Japan to continue with aggressive easing and hence for relative economic policy to continue to drive the yen weaker”, assessed K.Kirkegaard, Senior Analyst at Danske Bank.

At the moment, the pair is up 0.29% at 93.96 facing the next resistance at 94.22 (high Feb.8) ahead of 94.41 (high Feb.12) and then 94.46 (2013 high Feb.11).
On the flip side, a breakdown of 93.62 (low Feb.18) would expose 93.32 (Tenkan Sen line) and finally the psychological level at 93.00