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Forex pairs in this Article » USD/JPY (Athens) – The USD/JPY is trading well above the 99.50 handle in the kick off of the European trading session, indicating that the cross maintains its uptrend momentum.

USD/JPY eyes 100.00 area; still capped by 76.4% Fibonacci retracement at 99.66

The USD/JPY has been trading amidst a very confined area during both the Asian trading session, as well as amidst the kick off of the European trading session. Earlier, BoJ Member Policy Board Miyao mentioned through news wires that “must watch Japan’s economy after sales tax rise. Also some uncertainty for Japan Companies, Households remains.” While the Nikkei closed down by 0.15%, this might not added any downward pressure on the cross, as the correlation between the Nikkei and the USD/JPY is now at low levels (The 20-day% correlation between USDJPY and Nikkei 225 Index is now at (+0.2095), while a week ago was at +0.4038).CFTC's COT data showed that JPY net speculative positioning net short 73k as of Nov 5 versus 62k in the week prior, the most in a month. Thus, this could be well interpreted by traders that the cross might have an additional support to move further upwards.

Technical Perspectives on the USD/JPY

The USD/JPY is still capped by the 99.67 area (20th September high, as well as 76.4% Fibonacci retracement of the downtrend movement of the 11th September high as of 100.60 to 8th October low as of 96.55). In case the pair manages to breach clearly the 99.67 level, then it might be further driven upwards to the 100.62 zone (high of 11th September), followed by 101.05 (22th September high). On the downside, USD/JPY has found solid support at its 200-daily SMA (now laying at 97.81), but it could be seen that generally the area of the last Thursday’s low as of 98.59 - 97.71 might be used as a crucial support area.
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