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USD/JPY Limit Sell at 96.92

By Forex District – The pair fell under the 96 level amid worries in the banking sector and overall weaker stocks. S&P downgraded and revised the outlook for 22 US banks, increasing concerns of the banks ability to generate profit. Overall, trading has been mixed over the last couple of weeks as it continues to trade between the 99.00 and 93.00 level. The choppiness between risk appetite and risk sentiment has kept the pair mixed. Wall Street’s performance will be key to today’s price action.

Looking at the 4hour chart, USD/JPY shows the next level of support at 95.28, followed by 94.50 and 93.84. In the near term, the bias is neutral as the 95.70 remains a strong support. However, we could take short entry at 96.92 with a stop above 97.40 to play the previous range between 97.00 and 94.00.

Resistance lies at 96.30, followed by 96.81 and 97.05.

Trading levels in play:

Limit Sell @ 96.92 Targets: T1 96.72 – T2 95.85 Risk: 97.40
* After 15 pips profit move stop to entry, take profit at will. Good Till Ny Close. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.

As originally posted at Forex District.

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