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USD: Greenback Slightly Firmer Ahead of FOMC Decision, USDJPY Approaching 151.00

USD
  • The greenback has traded in a more supportive manner ahead of the month-end WMR fix and has continued to edge a little higher as we approach the July FOMC decision and statement release. The USD index has recovered around 30 pips off the lows, primarily driven by the near 1% bounce for USDJPY, approaching back toward 151.00 in recent trade.
  • Given the sharp post-BOJ moves, initial resistance moves down to 151.94, the July 25 low. A close below this point would be an important development reinforcing the current bearish trend. On the downside, renewed weakness would place the focus on 148.54, a Fibonacci retracement point.

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