USD-JPY Trade for May 23 2012

forex trading outlook today -USD-JPY Trade for May 23 2012 : The dollar sagged against the yen after the Bank of Japan kept its monetary policy unchanged. While the decision was in line with the expectations of most market players, a small number of participants had been speculating the BOJ could follow up with new easing steps after its monetary easing in April.

The dollar dipped 0.4 percent versus the yen to 79.64 yen . The greenback had risen 0.8 percent against the yen on Tuesday as the yen retreated after Fitch downgraded Japan's sovereign credit rating.

Since Japan's government debt is largely funded by domestic investors, Fitch's rating downgrade is unlikely to have a lasting impact on the yen, said Sumitomo Mitsui Banking Corporation's Okagawa.

Bank of Japan data shows that domestic investors held 93 percent of government debt as of December.

Markets were also keeping an eye on an informal summit of European Union leaders late on Wednesday, where France will push a proposal for mutualising European debt to help restore market confidence

USD-JPY Trade Recommended Levels for May 23 2012

Today's support:
79.43, 79.18 and 78.98(main). Break would bring 78.69, where correction is possible. Then 78.45 where a correction may also happen. Break of the latter will give 78.30. If a strong impulse, we would see 78.17. Continuation would give 77.98.

Today's resistance:
80.10 and 80.58(main), where a correction may happen. Break would bring 80.79, where also a correction may be. Then 81.00 If a strong impulse, we would see 81.33. Continuation will give 81.51.

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