The move through 87.50 overnight confirmed that a medium-term bottom has been put in place on the charts. Prices got a further lift from the risk trade after BofA announced they would pay back their TARP loan. Reports of a meeting between Japan’s MOF official in charge of forex and his US counterpart also sparked talk that joint intervention may be being discussed. Last, but certainly not least, there were reports overnight that Japanese authorities have appealed to exporters to refrain from hedging dollar until the dollar strengthens.
88.40 is moderate resistance for USD/JPY now on rallies with more at 88.69, the 20 day moving average. 87.90 bids are eyed on dips. We trade now at 88.20.