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USD/JPY drops to test 119.60, daily lows

FXStreet (Edinburgh) - The offered tone in the greenback is now picking up pace, dragging USD/JPY to test the area of session lows near 119.60.

USD/JPY attention to FOMC

Spot remains locked within a narrow range since early September around the psychological handle at 120.00, which also coincides with the 61.8% Fibo retracement of the down move from August peaks above 125.00 the figure to the 116.00 neighbourhood recorded in the wake of the PBoC move in late August.

The dollar and the timing of a potential Fed’s lift off will remain in the centre of the debate today, as the FOMC minutes are due later in the NA session along with speeches by Bullard, Kocherlakota and Williams.

USD/JPY levels to consider

The pair is now retreating 0.19% at 119.77 facing the next support at 118.68 (low Oct.2) followed by 118.00 (psychological handle) and then 116.16 (low Aug.24). On the other hand, a break above 120.61 (50% Fibo125.25-116.16) ahead of 121.40 (200-d sma) and finally 121.70 (38.2% Fibo125.25-116.16).

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