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USD/JPY bears, not so fast

FXStreet (Barcelona) - USD/JPY is trading at 108.14, up 0.11% on the day, having posted a daily high at 108.20 and low at 108.01.

Now, with the BoJ out of the way, where as expected they left the QQE program in pace as is, targeting annual purchases of JPY60 trillion to JPY70 trillion, we can turn our attention back towards the FOMC minutes until the BoJ’s next meeting at the end of the month, and bring in the technical picture, with the unwinding of the greenback in fall flow.

A USD/JPY buy on dips stance

We have corrective moves targeting 107.50 but so far the bulls have stepped in to put a blockade at the 108 handle and continued buying on dips may equate to a re-run on the yen and targets would be set towards 112.00 and beyond if we bring in the weekly longer term picture. On the upside, and coming from bullish analysts at RBS, “…possibly 120.00 on a long-term horizon”.

USD/JPY noteworthy levels

Current price is 108.15, with resistance ahead at 108.20, 108.33 (Daily Classic S1), 108.42 (Weekly Low) and 108.44 (Hourly 20 EMA). Next support to the downside can be found at 108.03 (Daily Open), 108.01, 107.88 (Daily Classic S2), 107.82 (Yesterday's Low) and 107.19 (Weekly Classic S2).

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