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USD/JPY bulls defending the 108 handle

FXStreet (Barcelona) - USD/JPY is trading at 108.20, up 0.16% on the day, having posted a daily high at 108.27 and low at 107.75.

Over the last hour the pair has been up to test territory on the 108 handle and rising with some conviction and yet to meet any decent form of supply. After two days of blitzing the greenback, markets will now be tuned up for the showdown to come in the form of the FOMC minutes. We had Fed voices hit the wires in the US session however and that wasn’t aiding the dollar supporters with Fed's Kocherlakota saying that it would be inappropriate to raise rates so soon in 2015 and then Fed's saying a stronger dollar would keep GDP below 3% and thus dampen inflation pressures. Any risk aversion that has been aiding the JPY with US stocks taking a hit earlier may start to loosen up again after the outcome of the FOMC and could offer opportunities to be long with some analysts sighting this run on the dollar simply a short term reversal in an otherwise broader rally. 112.00 would be next psychological target.

USD/JPY note worthy levels

With spot trading at 108.20, we can see next resistance ahead at 108.27, 108.33 (Daily Classic S1), 108.34 (Hourly 20 EMA), 108.48 (Weekly Classic S1) and 108.89 (Hourly 100 SMA). Support below can be found at 108.15 (Daily 20 SMA), 108.03, 107.88 (Daily Classic S2) and 107.82.

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