- Growing unease in the market with the North Korea situation keeps the yen bid on Wednesday.
- US durable goods orders data was disappointing overnight, Fed speak also not encouraging for the USD bulls. Policymakers continue to call for patience with rate hikes.
- US durable goods orders were finalized for July, and showed a 6.0% fall (vs -2.9% expected).
- USD/JPY slips below 109 handle, hovers around trendline support at 108.72.
- Intraday bias in the pair bearish. We see scope for test of major trendline support at 108.25 on weekly charts.
- Break below 108.25 will see test of 61.8% Fib retrace of 98.787 to 118.662 rally at 106.37.
Support levels - 108.60 (Aug 18 lows), 108.25 (trendline), 106.38 (61.8% Fib retrace of 98.787 to 118.662 rally)
Resistance levels - 109, 109.53 (20-DMA), 110, 110.95 (Aug 16 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -82.5831 (Slightly bearish), while Hourly JPY Spot Index was at 151.711 (Bullish) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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