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Forex pairs in this Article » USD/JPY (Athens) – The USD/JPY was a bit volatile prior to the US data release, but as soon as the release announced at exactly the same levels, the pair returned to the 98.60 level.

USD/JPY sticks to 98.60 area; US factory orders up to 1.7% in September

The USD/JPY was under some slight volatility prior to the US factory data release, but as soon as the data didn’t catch market participants off guard, the cross returned to its prior level at the 98.60 area. The last couple of hours the pair is moving amidst a very congested area, at the confluence of the hourly 50-EMA (98.53), hourly 10-EMA (98.64), hourly 20-EMA (98.64), at the area as of 98.53-98.63. Earlier, Fed’s Bullard said that “higher QE is unlikely, Fed enhanced credibility at September meeting.”

Technical Aspects on the USD/JPY

Taken for granted that the BOJ is still preoccupied with attempting to achieve its multi-year inflation target and we are ahead of a NFP week, the cross might continue to set up its bullish uptrend tone. As long as the pair holds the 200-hourly SMA support as of (97.79), but mostly the 200-daily SMA (97.55), will sustain its upwards momentum but to move further on the upper level, the pair should overcome the handle as of 99.01 (daily high as of the 17th October). Emmanuel Ng of OCBC Bank says “that TKY is away for a long weekend today but the USD/JPY may attempt to push gingerly higher in the current dollar environment. The next key psychological resistance is expected at 99.00. Meanwhile supportive JPY crosses stemming from positive risk appetite levels may also lend the USD a hand against the yen.”
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