Forex: USD/JPY fully retraces weekly gains, Yen stronger on G-20 meeting

The USD/JPY failed to extend above the 93.00 mark in early trading and has been falling across the chart as the Yen strengthens as Japan policy intentions risk being publicly condemned at the G-20 meeting. Also, Muto is being reported as the likely new BoJ Governor instead of Iwata or Kuroda. Muto is seen as much less radical in his approach, which disappoints yen bears.

The USD/JPY has gone as low as 92.25 and is currently trading around 92.50. The market is at its last trading day of the week and has completely retraced its gains up to 94.47 high. The weekly candlestick is now on the "red", as the pair moves below the opening price of 92.71.

"The intraday Elliott wave count is indicating a deeper retracement to 91.40 and possibly 89.55 is likely prior to another leg higher. We also note the 13 count on the weekly chart – this suggests a retracement", wrote Commerzbank analyst Karen Jones, pointing to an immediately bid market above 91.21.