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8 Oct 2013
USD/JPY back below 97.00
FXstreet.com (Edinburgh) -The USD/JPY is visiting again the area below the key level at 97.00 on Tuesday, as the risk aversion is reining in the sentiment.
USD/JPY extends the correction
The pair keeps correcting lower since September peaks near 100.60, now regaining some pips after bottoming out in the mid 96.00s, or multi-week lows. In another tone, there was no reaction after Y.Sato stepped down from his position in the government economic panel. According to analysts at TD Securities, “That retracement reflects the overall consolidative tone of markets this week as participants await further direction from the US political impasse. US developments will remain in focus, but if the week wears on without a resolution on the debt ceiling, risk aversion should become a clearer force and the JPY would be one of the biggest beneficiaries. It’s worth noting that there is a large USD/JPY options expiry tomorrow at 96.00, which may act as a magnet for the spot rate”.
USD/JPY key levels
As of writing the pair is advancing 0.23% at 96.93 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).
USD/JPY extends the correction
The pair keeps correcting lower since September peaks near 100.60, now regaining some pips after bottoming out in the mid 96.00s, or multi-week lows. In another tone, there was no reaction after Y.Sato stepped down from his position in the government economic panel. According to analysts at TD Securities, “That retracement reflects the overall consolidative tone of markets this week as participants await further direction from the US political impasse. US developments will remain in focus, but if the week wears on without a resolution on the debt ceiling, risk aversion should become a clearer force and the JPY would be one of the biggest beneficiaries. It’s worth noting that there is a large USD/JPY options expiry tomorrow at 96.00, which may act as a magnet for the spot rate”.
USD/JPY key levels
As of writing the pair is advancing 0.23% at 96.93 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).