Although it has already dropped substantially in recent months, the U.S. dollar/Japanese yen pair (USD/JPY) is set to remain under pressure throughout 2009 as global equities struggle to stage a credible recovery and major central banks hold off on raising interest rates.

Broadening yen strength combined with faltering fundamentals in the U.S. currency are likely to drag the USD/JPY under the 79 mark, a level not seen since both currencies began floating freely in 1973. Historical tendencies in the pair are poised to reassert themselves, driven by several market factors.