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Forex pairs in this Article » USD/JPY (Athens) - USD/JPY is trading higher well above the 97.00 level amidst the fifth consecutive decline of Asian indices.

USD/JPY eyes on FOMC minutes

Investors keep waiting for details of discussions at the Federal Reserve’s last policy meeting to gauge when the central bank might pare its bond purchases, against the backdrop of mounting fears that the outing will confirm the beginning of the “tapering” in September. In another tone, Japan’s raised severity of latest Fukushima leak to level 3 ("serious" radiation "incident") on international scale. Fukushima leak and Asian indices jitters, helped a lot to remain above the 97.00 level, despite extended dollar weakening and volatility, ahead of FOMC today’s meeting. Data-wise, the Japanese currency might also being hurt by dismal supermarket sales reported in July down 0.5%, versus up 2.7%, on a yearly basis.

Technical outlook on USD/JPY

At the time of writing, USD/JPY is trading at 97.50, up 0.24%.The Trend Index shows the pair to be slightly bearish. Investors should bear in mind that Nikkei Index down 0.79% as USDJ/PY is up 0.18%. Correlation between the two has risen from 0.41 for the past year to 0.65 for the past week. Daily pivot point support can be found at 97.00, 96.82, 96.57 and resistance at 98.09, 98.17 and 98.33, respectively.
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