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USD/JPY hovering around critical 100.00 zone

FXstreet.com (Chicago) - USD/JPY almost reached 100 again ahead of Tokyo’s opening and now hovers around the zone. The pair trades sideways with lower lows and accumulates 0.40% daily losses two hours before its end. Nonetheless, after dropping to 99.79, session lows, higher lows are revealed by price action.

Equities and expected data

Wall Street closed with mixed results as the Dow was up 0.89% along the S&P 500 but the Nasdaq failed to register gains as it was down 0.11% (potentially due to Apple’s weak performance). Yesterday in Japan, the Nikkei 225 closed with minimal 0.01% gains. Ahead of foreign and bond investment data along machinery orders in Japan, bulls put pressure on bears sending the pair close to 100 zone.

USD/JPY Technical Levels

Price action reveals lower lows until daily lows at 99.79, zone from which the pair rebound to start registering higher lows – potential consolidation reversal in formation. Offered at 99.95, the pair hovers around the 100 zone and oscillates between supports at 99.86 (September 2nd highs), 99.59 (July 19th lows) ahead of 99.32 (September 9th lows) ahead of 100.14 (September 4th highs), 100.46 (September 10th highs) followed by 100.64 (July 20th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and is offered below the EMA20. Primary and secondary trends remain bullish.

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