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USD/JPY en-route to 109.00 again

FXStreet (Bali) - USD/JPY has popped higher over 40 pips since the start of the Tokyo session, reverting the bearish momentum seen in the last US session, to currently settle the exchange rate at 108.85 from levels around 108.50 earlier.

Today, the Japanese CPI figures came mix, with Aug Tokyo inflation holding firm while Sept nationwide numbers were slightly softer-than-last month, which appears to have had a negative impact on the Yen's recent strength. The latest CPI data suggests that BoJ's inflation target, under present policy settings, may not be easily achieved, potentially leading to additional loosening further down the line.

Jim Langlands, Founder at FXCharts, notes: "The medium term outlook remains unchanged in that I think the dollar will eventually take out the hurdle at 109.50 and head a fair bit higher. If we do head back here, then above 109.50 would head towards the next realistic target at 110.65 (August 2008 high), above which the dollar would head on to 112.50 (76.4% Fibo level of 124.13/75.56). A break of this would suggest that the dollar is on its way to the July 2007 high at 123.65 although we have a lot of work to do before then."

China CB Leading Economic Index dipped from previous 1.3 to 0.7 in August

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