USD/JPY is finding support on weakness from a trendline drawn off the ‘flash crash” lows at 87.95. That line comes in today around the 89.25 level. Traders noted buying in USD/JPY by the Bank of Korea earlier today as part of its unloading of reserves diversified after past efforts to weaken the won.
Traders expect semi-official support for USD/JPY around the 89.00 level from the Japanese postal saving system, or Kampo, to keep the JPY from strengthening too much on risk aversion.
Stop-loss sell orders are noted below that level with Japanese exporters among those looking to sell on a break of 89.00, traders report. Expect offers from those same exporters above the 90.00 level. USD/JPY trades now at 89.54.
