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USD/JPY testing upside ahead of BOJ

FXStreet (Guatemala) - USD/JPY is trading at 107.89, up 0.05% on the day, having posted a daily high at 108.00 and low at 107.80.

USD/JPY is tucked in here below the 108 handle having made a slight come back from tests on the 107 mid point and where there is a lack of history here, scope to the downside would bring the 107.00 level into frame quite easily on a break. Valeria Bednarik, chief analyst at FXStreet explains also that in the 4 hours chart indicators present a clear bearish momentum.

We have the BOJ minutes as the main event shortly, and we might expect more of the same in respect to being on the right track. In respect of the Japanese economy, the two forces driving continued GDP growth will be investment and exports and a weak Yen may well be perceived as welcomed. Even if the BoJ’s 2% target in 2016 is reached, we might expect the central bank to keep rates low by buying JGB’s.

USD/JPY noteworthy levels

Spot is presently trading at 107.89, and next resistance can be seen at 108.13 (Daily 20 SMA), 108.20 (Daily Classic PP), 108.33 and 108.48 (Weekly Classic S1). Support below can be found at 107.88 (Hourly 20 EMA), 107.84 and 107.63 (Daily Classic S1).

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