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Forex: USD/JPY at session highs after US data

The US dollar steadied against the yen after the sharp selloff seen on Monday, and has spent most of the day oscillating around the 92.00 level. The pair received a boost in recent dealings after the latest string of US data, that includes Richmond Fed, home sales and consumer confidence, came in stronger than expected.

Earlier during the Asian session, the recovery of the USD/JPY was capped by 92.74, sending the pair back to a low of 91.40. However, despite intraday volatility, the pair has settled in a tight range around 92.00. At time of writing, USD/JPY is trading around 92.30, up 0.5% on the day.

From a technical view, Valeria Bednarik, chief analyst at FXstreet.com notes that technical readings are strongly bearish in the 4 hours chart, while a small symmetrical triangle is developing."Loss of the 91.80 support converging with the short term ascendant trend line should lead to renewed selling interest in the pair", the analyst said. Bednarik locates next supports at 91.80, 91.40 and 91.00, while she sees resistances at 92.70 and 93.10.

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