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USD/JPY capped again ahead of the 120.80 level

FXStreet (Guatemala) - USD/JPY has yet again fallen shy of the 120.80 level on a recovery attempt from the recent and previous lows of 119.39 before 120.10 lows.

USD/JPY's highs were just shy of the 120.81 200 DMA mark at 120.73. The Yen was shunned as markets moved back into risk-on with strong equities in European and US trade that allowed bulls free rein.

The final data release leading into the FOMC today again failed to portray a strong and solid platform for the Fed to hike rates tomorrow while CPI's in the US for August were missing expectations. The yen has also been in supply while the S&P rating agency downgraded Japan's rating to A+ from AA- on economic growth and the increasing government debt.

USD/JPY levels

Technically, the pair is in bullish territory with the momentum indicators turning positive. The 200 day MA (120.81) is still the key resistance to the upside and while below here, risks remain weighted to the downside. 119.40 is the target to the downside ahead of 118.40 and 116.15.

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