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US Consumer Confidence next: impact on USD/JPY

FXstreet.com (Córdoba) - Next on tap in the US docket will be the US consumer confidence numbers for May. Consensus is looking for 71.0 versus April's 68.1 reading.

Regarding market's reaction, Valeria Bednarik, chief analyst at FXstreet.com notes that majors could see mixed movements, except for the USD/JPY: "when it comes to the yen, the pair will likely regain the upside with a stronger than expected reading, while accelerate the downside on a disappointing one".

"For the EUR/USD, picture is a bit more complicated, with USD unlikely to advance on a positive number", says Bednarik.

USD/JPY rose sharply on Tuesday as the recovery seen in stocks supported dollar gains versus the safe-haven yen. USD/JPY regained the 102.00 mark and it was last up 1.1% on the day around 102.10. A break above 102.30 (daily highs) would open the way toward 102.60 (high May 24) and 103.00. On the other hand, if USD/JPY falls below 101.65 (20-hour SMA) it could see a deeper retracement to the 101.00/100.80 zone.

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