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Forex pairs in this Article » USD/JPY (Chicago) - USD/JPY flows around critical 98.00 zone prior to Tokyo’s opening after one day off for the Asians. The USD had a rather poor performance losing 0.46% against the yen on Monday on bearish comments about the economy and poor manufacturing results.

Holidays and slackers

Wall Street was soaked with bearish sentiment with the Dow closing down 0.32%, the Nasdaq losing 0.25% and the S&P500 retracing 0.47%. In Japan, markets were closed on fall holiday and no data was scheduled for publication. Fed’s representatives clarified how necessary it was to maintain the $85B stimulus package in the US as results demonstrate the economy is still slacking.

USD/JPY Technical Levels

98.73 (September 16th lows), 98.45 (September 13th lows) followed by 98.16 (September 19th lows) and resistances set at 99.00 (September 17th lows), 99.32 (September 18th highs) followed by 99.66 (September 20th highs). According to Sean Lee, Founder at FXWW, "It's unlikely that we will see much movement in anything today but USD/JPY might just be the trigger? Positioning is still heavily weighted towards longs, and with both EUR/JPY and AUD/JPY looking susceptible to deeper retracements, I'm thinking the main danger in $JPY is to the downside intraday."
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