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Forex pairs in this Article » USD/JPY (Edinburgh) -The greenback is trading on the soft side vs. the Japanese yen on Monday, dragging the USD/JPY to session lows around 98.10 although gaining some pips afterwards.

USD/JPY eyes on the US fiscal front

The uncertainty surrounding the US fiscal gridlock is hurting the greenback, prompting investors to find shelter amongst another safe havens. In the meantime, negotiations in Washington have yielded no result yet, although there were already rumours that a deal would be close. “Looking increasingly as if it is basing just above our 95/96 buy level. However, we are not convinced enough movement has been seen on Capitol Hill to argue the worst is over for the US$. We hold a neutral/ buy on dips stance for USD/JPY for the week ahead”, observed the Westpac Global Strategy Group.

USD/JPY levels to watch

The pair is now losing 0.33% at 98.27 with the immediate support at 97.91 (low Oct.11) followed by 97.64 (Tenkan Sen line) and then 97.35 (low Oct.10). On the upside, a break above 98.58 (MA100d) would open the door to 98.68 (cloud top) and then 98.73 (high Oct.1).
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