USD/JPY consolidates above 98.80, below EMA20; will this last?

FXstreet.com (Chicago) - USD/JPY soared after fluctuating up and down between 98.70/98.80 zones. At Tokyo’s opening, with the Nikkei down 0.40%, the pair jumped back to the 98.80 zone.

Tuesday tastes stronger

The greenback traded weak after the Fed tried to justify its decision not to taper and presented a still slow economic recovery scenario. Wall Street closed with losses with the Dow down 0.32%, the Nasdaq down 0.25% and the S&P 500 down 0.47%.

USD/JPY Technical Levels

Price action reveals the greenback opened Tokyo’s journey stronger than the yen after trading weak throughout Monday and accumulating 0.45% losses. Recovering 0.11%, the pair consolidates above the 98.80 and is offered at 98.84 to oscillate between supports aligned at 98.73 (September 16th lows), 98.45 (September 13th lows) followed by 98.16 (September 19th lows) and resistances set at 99.00 (September 17th lows), 99.32 (September 18th highs) followed by 99.66 (September 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.

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