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Forex: USD/JPY climbs to session highs to test resistance at 102.62/64

FXstreet.com (Barcelona) - The USD/JPY has continued to climb Thursday, allaying some fears – albeit temporarily – of a staunch retracement in spite of the recent rise in exchange. The USD is certainly in focus as well given the possibility of the ending QE3 in the United States. Having jumped to fresh session highs in recent minutes at 102.62/64, the cross is now notching a gain of +0.37% during European trading.

The USD/JPY growth has thus far been sustained – the pair will face calculated resistance at 102.65, then 103.16, and finally 103.56. On the pullback, a movement below 101.74 will initiate supportive structures at 101.34 ahead of 100.83, notes the Mataf.net analyst team.

According to Sean Callow, a Global FX Strategist at Westpac, “It may seem heroic soon after the USD/JPY’s 4.5 year highs, but we remain unconvinced that the pair has the fuel to sustain such heady gains. BoJ policy has not changed since the 4 Apr announcement and we expect Bernanke will at least interrupt the dollar’s bull run. We remain neutral on the week and see significant downside risks multi-week/month.”

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