How will USD-JPY October 2 2012

forex trading outlook today - How will USD-JPY October 2 2012 : Risk sentiment began to deteriorate during the New York session, putting USD/JPY under pressure. With no clear catalyst stocks turned lower while the US dollar and the yen strengthened versus most competitors. USD/JPY retraced its intraday gains and returned to the bottom-side of today's range at the 78.00 area.

At time of writing, USD/JPY is trading at the 78.05 level, where it is 0.1% higher on the day, having hit a high of 78.20 earlier on the day.

"As the pair breaks above initial Fibonacci barrier (38.2%) at 78.10 and near-term studies keeping positive tone, upside remains favored for now, with Fibonacci levels at 78.31/53 (50% / 61.8%) and the first one being reinforced by descending 55 day MA, seen as initial targets, along with 90 day MA at 78.80", says Slobodan Drvenica, analyst Windsor Brokers Ltd.

"Key near-term barriers lie at 79.00/30 zone and only break here would be a signal for stronger recovery", Drvenica adds. "On the downside, initial support lies at 78.00, ahead of 77.80, break of which would sideline near-term bulls".

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