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USD/JPY edges lower after US services PMI

FXStreet (Córdoba) - USD/JPY is staging a mild correction at the beginning of the American session as investors assess the latest series of US data.

US durable goods orders fell 18.2% in August while excluding transportation, orders rose 0.7, mainly in line with expectations. Initial jobless claims rose to 293K in the latest week following 280K registered the previous one and below the 300K expected. However, below expectations US services PMI (58.5 vs 59.0 exp) weighed on USD/JPY, which dipped back below 109.00 in recent dealings. At time of writing, USD/JPY is trading at 108.90, 0.12% below its opening price.

USD/JPY technical perspective

“The hourly chart shows however, 100 SMA remains flat in the 108.80 price zone, while indicators head slightly lower in neutral territory. In the 4 hours chart however the pair presents a strong upward momentum supporting a continued advance, more over on a break above 109.45 immediate resistance”, said Valeria Bednarik, chief analyst at FXStreet.

As for technical levels, Bednarik locates immediate resistances at 109.45, 109.80 and 110.20, while supports are seen 108.80 and 108.50.

United States Markit PMI Composite fell from previous 59.7 to 58.8 in September

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