Forex: USD/JPY flat for the week around 96.00

USD/JPY is last at 96.11, virtually unchanged for the week so far, following an initial weekly high Tuesday at 96.70, highest since Aug 2009, and a later on weekly low yesterday at 95.42. The pair cleared some stops reportedly placed from the 96.65 area to 96.50 yesterday, just to reverse from mentioned low on stronger demand, proving the case for some stops hunting in that zone.

Still to be confirmed new BoJ staff, which is adding some uncertainty to recent Yen weakness, is in any case almost a done deal, to start in office next March 20. “Overall bullish tone sees the upside favored, with break above 96.70, opening 97.00 next, while downside stays protected at 94.80, 50% of 92.90/96.70 and previous tops at 94.50,” says FXstreet.com independent contributor Slobodan Drvenica.

Immediate resistance to the upside for USD/JPY shows at yesterday's/Monday's Asian session/Tuesday's NY session high 96.25, followed by mentioned record 3.5-year Tuesday/weekly high at 96.70, and July 01 2009 highs at 96.98. To the downside, closest support lies at Tuesday's lows 95.62, followed by Friday's/yesterday's weekly lows at 95.42, and Thursday's highs at 95.10.