Forex: USD/JPY dives below 96.30 on massive taking profit

FXstreet.com (Barcelona) - Following confirmation by Japanese lower house of new BoJ Governor Kuroda, USD/JPY has seen a massive sell off last at 96.43 from session and fresh 3.5-year highs at 97.18, where big sell orders from Tokyo exporters had been reported. The pair is currently bouncing off recent mentioned fresh session lows at 96.20, on the back of a broad USD down move.

The pair erases this way all the gains made from the Tokio open, with Nikkei still barely above the 13k level, first time regained since August 2008, up +2.9% for the day adding to yesterday's +2.2% gains, off session highs when was above the +4%. The selling off in USD/JPY “is being attributed to Japanese 10 year yields climbing from 0.32% to 0.46%,” says FXBriefs.com editor Peter Fell, adding: “I assume this is just some position squaring ahead of the payroll data tonight.”

Immediate support to the downside for USD/JPY lies at recent fresh session lows 96.18, followed by March 21 highs at 96.14, and March 19 highs at 95.75. To the upside, closest resistance shows at March 14 highs 96.60, followed by March 12 highs at 96.70, and recent fresh 3.5-year/session highs at 97.18.