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USD/JPY pressured with a strong bearish bias

FXStreet (Guatemala) - USD/JPY is currently trading at 119.84 with a high of 119.97 and a low of 119.74.

USD/JPY has been pressured in the Tokyo open as the Nikkei opened modestly higher on the first day of October business, tracking a positive Wall Street month-end, but it soon felt the bears grip and started to come off the highs and the major garnered support at aforementioned lows.

USD/JPY in familiar ranges

The major is trading between familiar tight ranges still pressured at the 20 SMA on the hourly sticks below the 120.0 handle. There is a bearish bias to the major, but there are very few short positions left to unwind according to the recent CFTC data. However, the BoJ could be an area of risk next month where additional easing could be on the cards supporting eyes back on the 200 DMA resistance at 120.88.

USD/JPY technically bearish

MACD is turning to the mid lines and less positive and MA's are pressuring the major creating a strong bearish bias on the daily sticks. Technically, Karen Jones, chief analyst at Commerzbank explained 121.25/35 was pivotal. "Below here will target the 118.33 March low enroute to the 116.15/115.85 2015 low and the recent low. Here, we also find the 2012- 2015 116.37 uptrend...The market will find tough resistance directly overhead offered by 121.76/79, the late August high and the 61.8% retracement. While capped here a negative bias remains entrenched."

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