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Forex: USD/JPY: Dollar rises to 91.70 high after U.S. data

Tue, Sep 15 2009, 13:26 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - The Dollar has strengthened further on the back of an string of U.S. data, and the pair has broken above European session high at 91.27 to reach 91.63 high, before easing to 91.35 at the moment of writing.

Initial resistance area lies at 91.75 (July lows) and above here, 91.90 (Sept 3 low) and 92.10. On the downside, support levels lie at 91.00/05 and below here, 90.35 and 90.20 (Sept 11, 14 low).

Peter Rosentreich,technical analyst at ACM - Advanced Currency Markets observes the Dollar bearish whilst below 93.30: "The lethal combination of verbal intervention and the psychological 90.0 lvl has sent seller packing. Focus is now on 92.60 (61.8% retracement) yet below 93.30 remains bearish. Strong support now stands at 90.20."

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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