USD/JPY Breaks Over 85.00
December 27, 2012 in Forex Fundamentals and News
After the Tsunami hit Japan on March 11, 2011 with an earth quake of 9.0 magnitude on Richter scale, they Japanese Yen had gone down to 76.59 on March 16th 2011 but then had recovered to touch 85.52 on April 5th 2011. This was the first time for USD/JPY to hit 85 since mid September 2010. Since then the current pair remained below 85.00 with first low at 75.36 followed by the high of 84.18 and then the subsequent low of 77.13.
The Christmas of 2013 seems to have brought some cheers for Japanese Yen which has been hurting the national exports badly because of being strong against all currency majors. The economy has been depressed and the currency has been strong, proving that it was being preferred as a safe haven currency better than the U.S. Dollar. The opening of Asian session after the Christmas holiday saw USD/JPY to break the barrier of 85.00 after over 21 months. The pair went as high as 85.72 and staying bullish around there.
The next resistance over 85.00 level was 85.97 during September 2010 and the pair is slightly below that. If that resistance is also taken off then we can expect some more substantial gains.
Some important dates and price action since 2010 for ready reference:
1) May 2010: 94.98
2) April 5, 2011: 85.52
3) March 11, 2012: 84.18
4) December 27, 2012: 85.72 as of now.
1) March 16, 2011: 76.59
2) October 30, 2011: 75.36
3) September 9th 2012: 77.13
Note: All dates mentioned are according to Japan Standard time which is UTC (GMT) +9.00 hours.