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Will USD/JPY buyers continue to defend the 100.70 (the 20dma) area ?

FXstreet.com (Barcelona) - The Dollar/Yen has traded in a narrow range throughout the day, currently down 50 pips and consolidating around the 101.00 area as the release of the most recent BoJ monetary policy minutes during the previous Asia session didn’t seem to have a major influence on the pair.

According to Marc Chandler, Head of Currency Strategy at BBH, “BOJ policy minutes from the April 26 meeting showed that a few members thought the bank should consider ways to prevent a liquidity crunch in the JGB market. One member thought bond markets could become unstable. Meanwhile, BOJ governor Kuroda is doing his part to support markets. He reiterated that Japan can cope with rising interest rates and that there are no signs investors have “excessively bullish expectations.”

The FXStreet.com Trend Index remains Slightly Bearish on the daily chart, while the OB/OS index reads neutral. Initial support sits at 100.73 (the 20dma and low of previous two trading sessions), followed by 99.90 (previous resistance, now support). Initial resistance sits at 101.29 (the 50dma on 1 hour chart), followed by 102.18 (the 9 dma). Keep an eye on the 20dma support level as it has held firm on numerous attempts in the past, with the pair not closing below it since early May.

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