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US Session: Yen pulls back from new 7 year highs

FXStreet (Guatemala) - The Forex Space has seen, for the most part, majors moving within ranges and a two-sided story in the greenback.

As a result of supply in the US dollar in light markets, the Yen has dropped back from its highs that were made through the 116 handle on the back of the sales tax delays and Abe calling for a snap election overnight and creating a well bid Nikkei.

EUR/USD has been up to test space at 1.2500 but supply was met and the pair has for the most part been restricted in a tight range in the US session. The pair offers a bullish bias on the week so far and momentum indicators have not detracted either on the short-term charts. The bullish gap at the start of the week at 1.2460 would be the first target on further supply should the table turns.

GBP/USD managed to breach the short term resistance at 1.5920 and penetrated through to 1.5947 the high before meeting supply taking us back into no-mans land territory and highly neutral conditions. The short-term charts offer a cup, saucer, and the consolidating handle, which is starting to form. This could be offering a bullish short-term signal. Fundamentally, we are now awaiting the UK’s unemployment data and Quarterly Inflation report tomorrow.

In similar fashion, the AUD/USD came off from the highs at 0.8721 in the US and has started to consolidate below the 0.87 handle. There is strong support at 0.8680. It is a light calendar for the pair in Asia and consolidation may remain as the theme post recently positive local data releases.

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