FXWW News/JPY crosses/Technical Analysis/USD/JPY

USD/JPY: 97.50 looming as next important support point

  • Falling US yields will add to the bearish pressure here;
  • Reduced possibility of a tapering event by the Fed will improve risk sentiment and should benefit the Yen crosses;
  • Long positioning amongst the big macro players remains at high levels;
  • Short-term technical picture suggests that a clean break below 97.50 will open the way for a move to 96.50 at least and possibly 95.90 (see chart);
  • Very short-term technical levels to watch are at 96.50/90;
  • Trade data and a speech by BOJ Kuroda are the main events on the economic calendar.

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