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Forex pairs in this Article » USD/JPY (Córdoba) - The USD/JPY soared after the Turkish central bank rose rates and peaked at 103.44, after the initial reaction retreated, finding support at 103.10. The pair holds above 103.00 as stocks in Asia rise with the Nikkei 225 up 1.72%.

Risk appetite across the board is weakening the Yen, that is among the worst performers so far.

Technical outlook ahead of the FOMC

During the American session the Fed will announce its decision, that is expected to have a large impact on the US dollar. According to Jim Langlands from FX Charts, the USD/JPY could have a day of high volatility. “The topside will see sellers at 103.65 (61.8% of 104.83/101.76) and then again at 104.10 (76.4%). Dependent on the Fed, should the dollar really decide to take off, then last week’s high at 104.83 should again be decent resistance ahead of 105.00”.

Langlands notes that to the downside the key support lies at the lows of the current week, 101.76. “A break of that would have bigger implications as it would mean taking out the longer term rising trend line and would see a run towards the 100 DMA at around 101.00 and then the 200DMA at 100.00.”
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