FXstreet.com (Barcelona) – With the opening price at 79.55, Tuesday saw the USD/JPY falling down the chart as Japanese exporters sell the pair, having reached as low as 79.21 low during the European session. The bouncing movement is now strong enough to fully retrace the daily losses as the pair prices at 79.45, ten pips away from the opening price.
Risk sentiment is improving as the market awaits the German top Court’s decision regarding Germany’s participation in the ESM/fiscal pact. The €30B first aid tranche to Spain to be delivered in July and speculation of another Chinese rate cut are also moving the risk up.
“As far as the price action remains above 79.50, it will be reasonable to expect a new test of 80.60 and 81.45”, wrote Deltastock.com analyst Stoyan Mihaylov.