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USD/JPY clinches to 108.00

FXStreet (Edinburgh) - The greenback is now back to the positive ground vs. the Japanese yen on Tuesday, with USD/JPY hovering over 108.00 the figure.

USD/JPY all eyes on the FOMC

Spot managed well to retrace almost the whole drop to the 107.70 region post-Durable Goods, now treading water around the 108.00 handle as markets are drawing to a close. Moving towards Wednesday’s Asian session, advanced Industrial Production figures in Japan are due, with consensus expecting a 2.2% gain during September. In the meantime, the FOMC meeting will take centre stage, with investors expecting the Fed to announce the end of the bond-buying programme started two years ago. In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “It is possible that the mid-October rebound is no more than a consolidation of the 110/105 drop (potential bear flag signal in development). Look for renewed weakness in the USD below 107.25/35 in the next few days”.

USD/JPY levels to watch

At the moment the pair is up 0.24% at 108.08 with the next hurdle at 108.38 (high Oct.27) followed by 108.74 (high Oct.8) and then 109.08 (76.4% of 110.09-105.20). On the downside, a break below 107.64 (Kijun Sen) would open the door to 107.61 (low Oct.27) and finally 107.39 (high Oct.20).

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