Forex: USD/JPY extending its decline below 99.00

FXstreet.com (Barcelona) - The Japanese yen found renewed strength after the BoJ left intact its monetary policy this early morning, accelerating its gains against the greenback to the current area of 98.65/70 from lows in the vicinity of 99.40.

“For the next catalyst for USD/JPY moving higher it may well have to come from abroad. Clearly, the US economy is key. We do expect USD/JPY to move higher but much of the story going forward from here relates to the US economy strengthening again and the FOMC moving to taper QE3 by around year-end”, assessed Strategist at BTMU, Derek Halpenny.

At the moment, the cross is down 0.53% at 98.72 with the next support at 98.10 (low Apr.19) followed by 97.82 (hourly low Apr.18) and finally 97.79 (Tenkan-Sen line).
On the upside, a breakout of 99.42 (high Apr.26) would aim for 99.57 (high Apr.25) and then 99.90 (high Apr.22).