USD/JPY giving in; unable to maintain 97.70 zone

FXstreet.com (Chicago) - USD/JPY soared post FOMC minutes release but bears pressured sell off sending the pair down 0.12% within the past hour. Daily gains remain at 0.42% so far but uneven reactions across the markets indicate uncertainty among market participants.

Critical Thinking?

Wall Street recovered losses right after the FOMC minutes were made public but a slower reading and critical thinking assessment sent the stocks down to close in the negatives as the minutes did not contain clear data implying Fed’s tapering or indisputable economic recovery. In Japan the Nikkei 225 had closed up 0.21% on Wednesday.

Technical Levels

Price action indicates the pair soared to daily highs but retraced from 97.90 zone to stabilize around 97.60. Trading at 97.69, the pair oscillates between supports at 97.57 (August 14th lows), 97.47 (August 19th lows) ahead of 97.34 (August 18th lows) and resistances at 97.76 (August 16th highs), 97.93 (August 13th lows) followed by 98.13 (August 19th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis, offered above the EMA20.

Session Recap: The Dollar rises as the FOMC says anything

Too much noise but nothing, and lot of uncertainty. The USD rose on Wednesday as the FOMC minutes provided no clear signals on when the Fed will begin to taper its monthly bond-buying program. To top it off, Fed minutes showed members remain split whether the central bank should slow the pace of asset purchases and the appropriate timing.
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FOMC offers little insight on tapering initiative - economy still needs support?

The past month has been a tug of war between two prevailing consensuses – on one hand Fed Reserve officials see the writing on the wall and portend the near-term tapering of bond buying, whereas on the other hand others see the Fed preaching patience amidst a tepid economic recovery.
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