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Forex: USD/JPY stalls below the 94.00

Less than 1 hour to go for Japan current account figures to be out, USD/JPY pair is currently trading at 93.70, a +1% up for the week, and about 15 pips above previous Asia-Pacific open yesterday. Since anticipated general elections were called in Japan by mid Nov, USD/JPY has rose more than +17%, reaching highs above 94.00 not seen since mid 2010.

Nikkei index has also pushed to fresh 4-year highs, stalling ahead of the 11500 points mark, closing yesterday around the 11350, down -0.93% for the day. Both Nikkei and USD/JPY show already strong divergences in daily RSI 14, while in weekly charts Nikkei shows a reading of 80.25, highest since year 2005/06, and USD/JPY shows a reading of 88.18, level not seen since early 1990s.

Immediate resistance to the upside for USD/JPY shows at yesterday's highs 93.90, followed by Wednesday's fresh 33-month highs at 94.06, and June 01 2009 lows at 94.41. To the downside, closest support lies at Wednesday's lows 93.29, followed by yesterday's lows/Monday's highs at 93.18/07, and Friday's highs at 92.95.

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