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USD/JPY thinks of another attack at 108.00 support

FXStreet (Moscow) - USD/JPY posted 3-week low at 107.74 in Asia, before rebounding to 108.53 session high in early Europe; however, currently it is showing attempts of retreat below 108.20 area.

FOMC to watch

The pair has lost almost two figures during the last three trading days, and may do even more on the back of recent BOJ message, and the looming FOMC minutes. The thing is that recent downtrend of the pair was caused by two factors – the yen weakness, and the US Dollar strength. Japanese chairman Kuroda on Tuesday convinced the market it was not going to add stimulus in the nearest future, and this is yen-positive. Now, the focus is on the FOMC minutes, and on the tone of the text. If the market sees confirmation of long period of low rates, it may pressure the pair further down with initial target at 107.48.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 108.36 with support below at 107.48, 106.93 and 106.05 with resistance above at 108.91, 109.80 and 110.34. Hourly Moving Averages are bullish, with the 200SMA bearish at 109.10 and the daily 20EMA flat at 108.13. Hourly RSI is bearish at 44.

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