FXstreet.com (Sydney) - The USD/JPY is threatening to fall to its lowest level for 2009 and is trading at 87.20. The pair has dropped steadily since opening at 87.34 and the outlook for the pair is slightly bearish. The USD/JPY finds support at 86.88 and resistance at 87.48.
In the US, positive economic data showed that the recovery is gaining momentum. The sale of new homes increased sharply while unemployment claims fell. This resulted in stocks rising slightly and for the dollar to fall to 15-month lows against major currencies.
Meanwhile in Japan, minutes of the last meeting of the BoJ showed that they could reinstate an emergency-lending program for banks after it expires in March next year. It also indicated that it would keep rates at 0.1% to ensure the nation's recovery.