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Forex pairs in this Article » EUR/USD, USD/JPY (New York) - The USD/JPY foreign exchange rate recovered from an earlier stumble that left the pair racing towards the depths of 97.77 (session low), during Asian trading.

At the time of writing, the USD/JPY is now settling near 98.06, presently holding onto a tepid gain of +0.01% during Asian trading. Technically speaking, the USD/JPY faces strong support at 97.95 (July 26 low), ahead of 97.87 (June 27 high), 97.65 (June 27 low), and 97.34 (June 26 low).

USD/JPY event risk

Earlier today in Japan, Retail Trade (YoY) was reported at +1.6% in June, missing expectations of +1.9%. Moreover, Retail Trade s.a. (MoM) came in at -0.2% in June, relative to a figure of +1.5% previously. Finally, Large Retailers Sales (June) yielded +3.5%, compared with -0.4% previously. Later today at 3:30 GMT, BoJ Governor Kuroda is scheduled to give his speech, which may lend a short-term impetus to the pair.

USD/JPY strategic bias

According to Jim Langlands at FX Charts, “The USD/JPY levels to watch on the topside are at 98.55 (23.6% of 100.44/97.95) and then 98.89 (38.2%), 99.20 (50%) and 99.48 (6108%). With the hourly charts having now become oversold, some sort of near term short squeeze is possible, although whether the dollar can get back over 99.00 looks a little doubtful – at least for Mondays trade. Further out, we closed the week below the 200-day MA (98.38) and the 4-hour, daily and weekly charts are all pointing south.”
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