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USD/JPY breaks below 117.00, at 1-month lows

FXStreet (Córdoba) - USD/JPY came under renewed pressure and broke below the 117.00/116.90 support area, extending the decline to fresh 1-month lows amid broad USD weakness.

USD/JPY fell to a 1-month of 116.22 after leaving behind the 23.6% retracement of 101.06-121.83, this year rally. At time of writing, USD/JPY is trading at 116.55, recording a 1.04% loss.

However, the current move down is only consider as corrective with divergent monetary policies favoring the upside for the pair. Tomorrow the FOMC will conclude its 2-day policy meeting, with markets paying attention to the ‘considerable time’ language, to see if the Fed is moving closer to start hiking rates.

USD/JPY technical levels

As for technical levels, USD/JPY could find next supports at 116.22 (daily low) and 116.00 (psychological level). On the flip side, resistances are seen at 118.00 (psychological level/daily high) and 118.54 (21-day SMA).

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