Breaking January Highs for USD/JPY
USD/JPY finally broke Jan high (77.34) today hitting 77.39 at the time of writing. This may be on the back of news that Bank of Japan cut its growth outlook. Governor Shirakawa and board members lowered the economic forecast to 2 percent from an October estimate of 2.2 percent for fiscal 2012. In addition we heard funds bought large in the run up hoping to trigger stops above 77.40. We think this resistance will not be easy to break hence going short with a tight stop is worth considering if the risk/reward for you makes sense. Technically 76.50 should be quite solid now if not for anything other than the chance of BOJ intervention. The next level on the top side is 78.25.