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USD/JPY flat around 98.00

FXstreet.com (Edinburgh) -The Japanese yen continues its decline against its American counterpart on Thursday, lifting the USD/JPY back above 98.00 the figure after dipping to 97.60.

USD/JPY focus on US docket

Decent results from today’s US economy might revert the intraday USD weakness and add extra buying interest to the pair, leaving the door open for a new visit to weekly peaks around 98.45/50. Sebastien Galy, Strategist at Societe Generale, assessed, “Our position indicator suggests that the market remains still very much long USD/JPY leaving the risk reward for topside USD/JPY none the best. USD/JPY 99 is still the fair value under abenomics identified months ago and we should oscillate around and especially below it before we rally higher”.

USD/JPY levels to watch

At the moment the pair is advancing 0.01% at 98.15 facing the next hurdle at 98.30 (high Aug.15) followed by 98.43(Kijun Sen line) and finally 98.75 (cloud base). On the downside, a break below 97.48 (Tenkan Sen line) would bring 96.88 (low Aug.13) and finally 95.92 (low Aug.12).

Session Recap: GBP outperforms in quiet session

The USD is trading lower on Thursday, but mostly within recent ranges. The main exception is the pound which strengthened sharply after UK July retail sales came in twice as strong as the consensus expected. GBP/USD rose to a fresh 2-month high of 1.5593 while EUR/GBP fell to a 6-week low.
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EUR/USD in consolidation mode ahead of US data

After printing a daily high above 1.3300, the EUR/USD lost momentum and entered in a consolidation phase that has extended over the last hours.
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