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USD/JPY sold-off as Aso talks up the Yen

FXStreet (Bali) - USD/JPY is off large after Japanese Finance Minister Aso talked up the currency, noting that the speed of yen weakening has been too fast, a comment that that has seen the par slide by over 60 pips.

USD/JPY is presently trading at 117.50, off over 150 pips after topping out at 119.00 on Thursday, following irrational Yen selling over the past few days. With Japanese authorities now more active monitoring Yen depreciation, it may not bode well for those late comers aiming to jump in the Yen bear bandwagon before seeing a more meaningful correction. Besides, the USD stance at the moment looks a bit dubious following failure to rally on good US data, a revealing sign that a deeper correction might loom near.

Jim Langlands, Founder at FXCharts, notes: "The retracement may have further to run to the downside given the bearish divergence and the generally negative look of the shorter term charts, to where support should be seen at 117.10 (100 HMA) and then at 116.30 (200 HMA). Such a move would be healthy for the longer term uptrend, and we could even head back to 115.75 (23.6% of 105.19/118.98) without doing too much damage."

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