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USD/JPY: Yen bid on pre-FOMC jitters, near 120.30

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The Japanese currency regained lost momentum versus the US dollar in the mid-European session, now pushing USD/JPY back below 10-DMA at 120.40.

    USD/JPY capped below daily pivot at 120.54

    Currently, the USD/JPY pair trades -0.08% at 120.35, keeping range around 10-DMA so far. The major remains largely subdued, unable to benefit from the rallying European stocks, as markets prefer to hold the safe-havens ahead of the Fed decision.

    Adding to the downside in the USD/JPY pair, the US dollar extends losses versus its major competitors as risk-off persists ahead of Fed and BOJ decisions.

    The Fed decision is widely expected to turn out to be a non-event with dovish rhetoric while the BOJ could unveil additional liquidity measures following suit after the PBOC and ECB announcements last week.

    Looking ahead, the major is likely to remain undermined, although in familiar range between 120-120.60, as the Fed decision will only set a clear direction on the pair.

    USD/JPY Technical levels to watch

    The prices are steadying below the 10-DMA at 120.40, with the immediate support in sight is located at 120.09/08 (20 & 50-DMA), below which 119.60 (daily S2) would be tested. While on the upside, the next hurdle is seen at 120.63/69 (hourly 100 & 50-SMA), above which the pair would climb further towards 120.94/121 (5-DMA + round number).
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