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Hugging Tight Range

DOLLAR-YEN

USD/JPY fluctuated within a tight, 17 pip range yesterday, trading sideways as both sides of the pair struggled amid risk-on mood, with the White House signalling openness to a larger, more comprehensive stimulus package.

  • The rate remains rangebound and last trades flat at Y106.02. A break above Sep 8 high of Y106.38 would allow bulls to set their sights on Sep 3 high of Y106.55. Conversely, the 20-EMA intersecting at Y105.66 provides the initial bearish target and a break here would bring Oct 2 low of Y104.94 into view.
  • Japanese earnings/spending data is due at the bottom of the hour.
  • Next week's data highlights include core machine orders & flash machine tool orders (Monday), final industrial output (Wednesday)

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