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USD/JPY: Bulls in control, 106.45 next target

FXStreet (Bali) - USD/JPY keeps strengthening in the early going of the Tokyo session, currently at 106.09 after posting new 6-year highs at 106.16 just minutes ago, following the break of the 106.00 barrier on Monday.

The combination of USD broad-based buying interest on Monday, coupled with buoyant US bond yields and a WSJ report citing Japan's PM advisor Mr. Honda as saying that the 2015 planned sales tax hikes should be delayed, all helped to increase the demand for the pair.

Jim Langlands, Founder at FXCharts, notes: "Barrier sellers ahead of 106.00 did not stand in the way for long, and now that this has been overcome I suspect we could soon be looking at the long held target at 106.45 (100MMA) which should slow up the dollar’s progress at least for a while, as we have not been above that indicator since Dec 2007. Beyond there, the next real resistance is not seen until the August 2008 high at 110.65. On the downside, the first bids will be seen at 105.70 and then at 105.50 and at 105.00."

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