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USD/JPY buyers continue to support the 102.00 area

FXstreet.com (Barcelona) - The USD/JPY has started the weak off on a soft note, finishing the day down 71 pips at 102.25 but again holding support near the 102.00 level which continues to be an area of steady demand the past four trading days.

According to Mike Jones, Current Strategist at BNZ, “comments from Japan’s Economics minister Amari yesterday (that the yen correction may be close to complete) sparked a flurry of profit-taking on USD/JPY long positions. After ending last week above 103, USD/JPY has tumbled back to around 102.30. The consequent broader pullback in the USD overnight is instructive as to just how much USD/JPY is driving USD sentiment at present.”

From a technical perspective, the 102.00 level which will again act as initial support during the coming session. A break and close below 102.00 could open the doors to further selling down near 101.25 (area of demand on 1 hour chart). First resistance sits at 102.57 (the 50 dma on 1 hour chart), followed by 103.11 (previous day high price).

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