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USD/JPY fluctuates wildly, but is flat versus Friday’s close

FXstreet.com (Barcelona) - The USD/JPY had opened nicely higher for the week. But once the clock struck 15:00 GMT Monday, a slide began in the cross due primarily to some strength / buying in the Yen.

USD/JPY possibly being whipsawed around by impatient traders

With a relative absence of market moving news in Japan and the US until Wednesday, technicals, Fed-tapering rumors and perhaps the psychological “desire to do” on the part of antsy traders seem to be having the biggest influence on the USD/JPY.

Japan did have some tepid numbers from the Leading Economic Indicators and they are going to release the All Industry Activity Index at 04:30 GMT Tuesday, but neither those nor the Chicago Fed National Activity Index at 12:30 GMT in the US are major enough to make the big players place big bets.

Technical outlook for USD/JPY

The USD/JPY may move in either direction in the very short-term according to technicians. Support comes into play at the 8/16 low of 97.05. Meanwhile, resistance for what may be a modest bounce under way comes in at 99.87.

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