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Forex pairs in this Article » USD/JPY (Edinburgh) -The greenback is sharply depreciating against the Japanese yen on Thursday, dragging the USD/JPY towards the lower band of the range at 97.90/98.00.

USD/JPY lower with the dollar

The demand for the greenback remains subdued today, adding extra support to the risk-associated and high-beta currencies, ahead of the US docket where Initial Claims and the regional manufacturing survey sponsored by the Philly Fed are due amidst a slew of Fedspeak. “Japan is expected to have the most currency negative policy mix of the G10 currencies in 2014 (monetary easing and fiscal tightening). This justifies the current undervaluation of the yen and given that the Fed is scaling back on its monetary easing, we expect further upside in USD/JPY”, observed Morten Helt, Senior Analyst at Danske Bank.

USD/JPY key levels

At the moment the pair is losing 0.88% at 97.91 with the next support at 97.78 (Tenkan Sen line) followed by 97.35 (low Oct.10) and 97.11 (low Oct.9). On the upside, a breakout of 99.01 (high Oct.17) would open the door to 99.14 (high Sep.26) ahead of 99,18 (high Sep.24).
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