Forex Flash: USD/JPY: A move below 79.14 would be important; 1M Target is 78.00

Forex Flash: USD/JPY: A move below 79.14 would be important; 1M Target is 78.00

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Forex Flash: USD/JPY: A move below 79.14 would be important; 1M Target is 78.00 - UBS

FITITOL--> FXstreet.com (San Francisco) - The USD/JPY has falling back today to its last days range between 79.80 and 79.20 after a brief peak to 79.95. IN the day, the pair managed to hold levels above 79.75 but recent ISM manufacturing weak data has launched the pair to levels close to 79.30, fresh intra-day low.

"Former DPJ party leader Ozawa announced his resignation from the DPJ ruling party overnight, in the wake of his decision not to support a sales tax hike in last week's vote," says Chris Walker, FX Strategist for UBS Bank, in a published report.

"Forty other Lower House lawmakers resigned too. Prime Minister Noda continues to command a lower house majority although his position has arguably been weakened somewhat as a result. USDJPY was largely unmoved - drifting only 5 pips higher on the news," UBS reports continues.

USDJPY is "neutral" according to UBS. "A move below 79.14 would be an important bearish development and triggers weakness towards 78.79 ahead of 77.66." The Banks Target a 1 month is "78.00", while in the 3-month target, UBS expects "78.00" too.