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Forex pairs in this Article » USD/JPY (Barcelona) - More important that a report slightly above the 113k consensus, being at 114k in September, the US nonfarm payrolls in August were revised much higher, from 96k to 143k, which boosted the risk sentiment of the NY session and provided scope for a rally of the USDJPY.

The USDJPY rallied more than 40 pips to 78.87 high on the NFP data, but a downtrend line seen since April 20 is fighting the upside at 78.85. The pair has retreated to 78.65 area, for now. Also, the market may be pricing in expectations regarding the weekend and the Eurogoup meeting next Monday, with some hopes of a Spanish aid request to be formalized and announced there. Prime Minister Rajoy, however, has denied any intentions of doing that.

Commerzbank analysts believe the USDJPY is stalling just ahead of the base of the cloud at 78.87, and so, near term consolidation is expected, though there are buy signals on the DMI and slow stochastics indicator. "This is viewed positively and we look for a rally to the top of its cloud at 79.26/27", wrote analyst Karen Jones.
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