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Forex pairs in this Article » USD/JPY (Edinburgh) -The greenback is accelerating its intraday decline on Thursday, dragging the USD/JPY to fresh lows around 96.90, levels last seen in late August.

USD/JPY weaker following the USD

The pair would remain under pressure as there is no solution in the near term horizon to the political gridlock in the US. While markets are still wondering how long the shutdown could last, concerns have already arisen regarding the debt ceiling debate and the proximity of its deadline, set for October 17th. Tim Riddell, Head of Global Markets Research at ANZ, commented, “Despite this range-defining profile, the longer term bias for JPY to resume at some stage is very much intact. Therefore the potential slippage towards range support should be seen as a buying opportunity on the basis that the long-term trend of JPY weakness will then resume”.

USD/JPY key levels

The pair is now losing 0.21% at 97.14 with the next support at 97.00 (psychological level) and then 96.81 (low Aug.28). On the flip side, a breakout of 98.06 (cloud base) would expose 98.09 (high Oct.2) and finally 98.19 (cloud top).
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