USD/JPY - 90.65 ... Although the dlr fell to fresh lows for '09 y'day vs other majors such as the euro n chf after the Fed signalled that interest rates wud likely to remain low for some time, cross selling in yen limited the pair's downside somewhat as investors' appetite for riskier assets was boosted by optimism over U.S. corporate earnings reports (Dow climbed back abv the 10,000 lvl) n price rebounded after falling to 90.37.
Today, as long as aforesaid sup at 90.37 holds, upside bias remains for recent upmove fm this month's 8-1/2 month low at 88.01 to resume n abv 91.33 (last Friday's high) wud bring correction of MT decline twd 91.50 (38.2% r of 97.79-88.01). Therefore, trading fm long side is favoured but profit shud be taken on next rise as upside wud be capped well below daily res at 92.55 n yield selloff later (see our weekly outlook).
Below 90.37 wud signal a temporary top has been formed last week at 91.33n risk wud be for correction to 89.90 (prev. res) n then 89.67 (50% r of 88.01 -91.33) but only breach of 88.83 wud indicate the rise fm 88.01 has ended...
