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USD/JPY cuts early losses as risk aversion eases

FXStreet (Córdoba) - USD/JPY bounced from daily lows and trimmed most of its intraday losses as the greenback stages a comeback as risk aversion eases and stocks turn positive in Wall Street.

USD/JPY bottomed out at 119.54. its weakest level since Oct 2, but managed to turn around and rose all the way back to 119.89. At time of writing, the pair is trading at 119.80, 0.18% below its opening price.

In the absence of major data releases, trading remains driven by the risk sentiment. Fed’s Bullard was speaking earlier, stating that the lift-off is still appropriate despite challenges, although he pointed out that October might not be the time.

USD/JPY technical view

According to Valeria Bednarik, chief analyst at FXStreet, short-term technical indicators still favor a downside continuation, with the next support at 119.35, the 38.2% retracement of its latest bearish run. “Below this level, the pair can extend down to 118.90, followed later by 118.55, the base of its latest range”, said Bednarik.

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