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Forex pairs in this Article » USD/JPY (Edinburgh) -The intraday upside of USD/JPY seems to have run out of steam around 97.20 on Tuesday, retracing afterwards to the boundaries of the key support at 97.00.

USD/JPY propped by US events

The pair is recovering ground lost in yesterday’s pullback, retaking the 97.00 handle after dipping to the mid 96.00s on renewed hopes of a solution for the current US Government shutdown and the upcoming debt ceiling. In the opinion of Shaun Osborne, Strategist at TD Securities, “Longer-term price signals imply to us that the trend higher in USD/JPY that got underway late last year is starting to tire while short-term signals—especially the loss of key support around 97.50 last week—suggest that more immediate downside risks are building.
A break below the 200-day MA (96.68) may trigger more pronounced weakness”.

USD/JPY key levels

As of writing the pair is advancing 0.38% at 97.07 facing the next resistance at 97.45 (high Oct.7) ahead of 97.49 (high Oct.4) and then 97.88 (high Oct.3). On the flip side, a breakdown of 96.81 (low Aug.28) would expose 96.68 (MA200d) and finally 96.56 (low Oct.7).
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