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Forex pairs in this Article » USD/JPY (London) - USD/JPY has been gathering itself mostly below the figure of 98.00 pre afternoon and further US data, oscillating in the 97.80’s.

USD/JPY on US Data.

USD/JPY initially spiked higher through the figure calling at 98.22, a high for the session, but then reversed back to settle and oscillate on the figure. A series of numbers came out overall better than expectations. CB Leading Indicator came in slightly worse at 0.1 % vrs expectation 0.2%, Existing Home Sales Change came in much better at 4.2 % vrs expectation 0.6%, Philly Fed Manufacturing came in much higher 12.5% vrs expectation -0.2

The pair has broadly recovered from the recent correction in the Yen with the statements from the FOMC overnight. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in a broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer.

USD/JPY upside target

Karen Jones, analyst at Commerzbank explained only an unexpected rise above the resistance line at 98.95 would neutralise their outlook and imply another test of the 103.74 May high. They note that the 20 and 55 day moving averages have crossed over and these offer additional resistance above the market at 99.06/14.
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