Deep downward correction which overcome July’s increases, ended with a strong purchases in 101.50-102.00 zone and now the price hit the key resistance (102.60/70). It is really important spot, because the future of USD/JPY will be set here. Breaking from the bottom will let the pair move higher to the last top (103.00) and maybe further to 103.50.
A lot depends on market sentiments – due to situation in Ukraine and Iraq. While we can talk about slight warming, the western countries are still considering intervention in the Middle East. What is more, we will face important data from United States today, FOMC minutes tomorrow and the PMI on Thursday. All these publications will have impact on the USD/JPY – if not directly through the USD, then because of positive USD/JPY and risk correlation. It is worth to observe upcoming events, as then cay provide fuel to strong bearish or bullish movement.
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