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The Japanese yen extended its rally against the U.S. dollar from earlier this week, with the USD/JPY slipping to a six-month low of 90.21 on Friday, while the Australian dollar remained little changed on the day after reaching a fresh yearly high.


The Japanese yen extended its rally against the U.S. dollar from earlier this week, with the USD/JPY slipping to a six-month low of 90.21 on Friday . The dollar-yen has moved nearly two-times its average true range after falling 133pip from the open, but the sharp overnight decline looks to have lost steam ahead of 90.20. As a result, the lack of momentum to test the psychological support at 90.00 may push the dollar-yen higher over the remainder of the trade, and we may see the pair may retrace the sharp decline over the following week to test for near-term resistance.



The Australian dollar rose to a fresh yearly high of 0.8676 against the greenback on Friday, but immediately retraced the move to remain little changed on the day following the pull back in risk appetite. As the pair fails to push above 0.8700 for the second time this week, the AUD/USD is likely to hold a narrow range over the next few hours of trading, may retrace the eight-day advance over the following week as the RSI approaches oversold territory. The aussie-dollar may test this week's low (0.8505) for near-term support as the pair continues to find psychological resistance ahead of 0.8700, and a break below the 0.8500 is likely to expose the 20-Day moving average at 0.8414.