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USD/JPY clinches to 109.00

FXStreet (Edinburgh) - The Japanese yen continues to trade on the soft camp vs. the greenback on Monday, taking the USD/JPY back to the 109.00 neighbourhood.

USD/JPY bolstered by the USD

While the greenback continues its rally, the bearishness surrounding the Japanese yen seems it will stay for longer following recent comments by Japanese Economy Minister Amari. The politician asserted that the second increase in the consumption tax will be effective from October 2015, supporting the case for at least the same pace of monetary stimulus. In light of the GDP figures to be released in the upcoming sessions, Currency Analyst lee Hardman at BTMU commented, “We continue to see scope for further US dollar strength on the back of the ongoing outperformance of the US economy and shift to tighter monetary policy from the Fed”.

USD/JPY levels to watch

The pair is now flat at 109.03 with the initial up barrier at 109.46 (2014 high Sep.18) followed by 109.57 (high Aug.29 2008) and then 109.94 (high Aug.26 2008). On the downside, a breach of 108.67 (low Sep.22) would expose 108.60 (low Sep.19) and finally 108.32 (low Sep.18).

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