FX News – August 27: Currencies Drop Vs Yen

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The USD/JPY opened today's trading on the downside amid talks that the White House might strike Syria in a day or two upon President Barack Obama's orders. The strike is said to be due to the use of chemical weapons in the Syrian conflict.

Later this week, traders of the yen also await updates on the current debate on Japan's planned tax hike. In addition, other economic data could also affect the currency including the National CPI and Industrial Production.

The pair already dipped to a low of 98.03, before climbing to the 98.30 level. The USD/JPY pair is currently trading at 98.29, with initial resistance seen at 98.68, followed by 98.93. On the other hand, initial support is at 98.09, followed by 97.84.

The AUD/JPY pair also fared poorly in today's Asian session as it slid below the 88.10 level. Like the USD/JPY pair, this drop is due to concerns of a possible US strike against Syria.

The pair has managed to climb a little and is currently trading at 88.26, with initial resistance seen at 89.13 followed by 89.35. Meanwhile, initial support is at 88.54, followed by 88.32.

Massive buying of the yen also caused the GBP/JPY pair to drop under the 152.90 level in today's Asian session. It made a slight recovery over the past hour although it is considerably lower than yesterday's high at a little above 153.90.

The GBP/JPY pair is currently trading at 153.02, with initial resistance seen at 154.12, followed by 154.51. Meanwhile, initial support is at 153.32, followed by 152.94.

Even the NZD/JPY wasn't immune to the yen purchases as it also dipped to under 76.70 early in today's session. The pair also made a recovery at the 76.86 level, with initial resistance seen at 77.92, followed by 78.12. Meanwhile, initial support is at 77.05, followed by 76.85.

By FX Strategy Team, Published on 27th of August 2013
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