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Forex pairs in this Article » EUR/USD, USD/JPY (Bali) - The Japanese Yen was well offered throughout the Asian session, with a strong high-volume rally in the Nikkei to blame.

According to Haruya Ida, Analyst at IFR Markets: "Offshore buying of Japanese stocks looked to be massive with net buy orders at foreign brokers ahead of the TSE open a whopping 12.1 mln shares."

Looking at USD/JPY, it continues to make higher highs and higher lows intraday (H4), with the latest retrac last US session well contained by a flat ichimoku span B line, leading to a rebound towards 103.00.

The next direction for the USD/JPY will be determined by the FOMC outcome, in which optimism about a possible taper in Dec has been on the rise. Failure to announce a wind down in bond purchases later today may cause the USD/JPY to erase early gains seen in Asia, while a taper may see pair firmer - subject to amount of monthly purchases reduced -. Investors will also keep an eye on any update on the Fed's policy guidance.
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