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Forex pairs in this Article » USD/JPY (Athens) – The USD/JPY managed to overcome the 98.10 handle and despite the Nikkei fall, it is hovering amidst the 98.10 – 98. 40 area in Asian trading session the last couple of hours.

USD/JPY finds solid support as usual before weekends by Japanese importers, investors

The USD/JPY is hovering amidst a very tight range the last couple of hours amidst a tight range of 98.09 – 98.23. Market participants could well attribute the range trading well above the 98.00 area, despite the Nikkei decline, to a couple of reasons. First of all, it is very common that the cross is well bid before weekends on decent fix demand, while we are also ahead of a Sunday hefty Japanese data. As it is widely known the usual suspects on such moves on the cross before weekends, are mostly the Japanese importers as well as investors.

Technical Perspective on the USD/JPY

The USD/JPY has found solid support at its 200-daily SMA (now laying at 97.71), but it could be seen that generally the area of the yesterday’s low of 98.59 - 97.71 might be used as a crucial support area. For the time being, the cross might move sideways amidst the Ichimoku cloud of 98.20 -98.40, but on the upper side it might find major difficult to trend higher as there is the 100-daily SMA at 98.55 area. Market participants should be aware of the fact that above the areas of 98.20 – 98.40 there are a lot of large option expirations today.
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