Mon, 16 May 2011 01:33:00 +0200

Forex: Yen strengthens against major rivals

FXstreet.com (California) - The USD/JPY closed above its weekly open for the first time in 5 weeks. The decline of the USD/JPY started in the market after the pair reached record highs at 85.50 on April 6, and has since has been moving with a bearish bias.

The pair has fallen almost 600 pips since then, bottoming at 79.55. Last week the pair tested lows below 80.20 but managed to recover and close the trading week at 80.79, 20 pips above its weekly open. At the time of writing, the USD/JPY has opened the Asian session at 80.85 and is trading in a tight 16-pip range between 80.94 and 80.78 amidst low levels of liquidity.

The Yen finished higher against EUR/JPY and AUD/JPY last week, extending their retreats from monthly highs for the second week in a row. The mention crosses finished near the lows because the Yen maintained upside momentum after falling amidst a decrease in risk appetite, a stronger performing dollar and weaker commodities.

At present, the EUR/JPY trades at 113.75, nearly 20 pips below the Asian open; AUD/JPY is quoted at 85.36, about 15 pips below its open.

Technical Analysis (2011-05-15 23:00 GMT)
AUD/JPY 85.34/85.39 - O: 87.59 H: 87.625 L: 87.53 C: 87.595
Trend	R3: 85.7868
	R2: 85.5734
	R1: 85.3600
	S1: 84.8934
	S2: 85.1067
	S3: 85.3200