Forex: USD/JPY pressured by G20, closer to 92.00

Having weakened to 92.25 low on risks of Japan policy intentions being publicly condemned by the G-20 and speculation about a less radical incoming BoJ Governor, the USD/JPY attempt to erase losses didn't last long as European officials talked down exchange rate policies and called for focus on reforms. This second downward momentum found its low at 92.23, and the market is currently erasing losses.

Just released, EMU trade surplus in December was narrowed from €13B (revised from €13.7B) to €11.7B, instead of ending at €13.1B as expected.

"Break here (92.00) would be a trigger for more significant correction and open 91.25, 50% of 88.05/84.45 upleg next", wrote Windsor Brokers analyst Slobodan Drvenica, adding that any bounce higher would face initial barriers at 92.80/93.00 zone, while only regain of 93.70/76 double top of 13/14 Feb, will shift near-term focus higher.