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USD/JPY returned above 106.00, upside limited so far

FXStreet (Moscow) - USD/JPY  found buyers at the Asian low of 105.75 and settled marginally above 106.00 pivot as investors are taking wait and see approach after Wednesday’s volatile movements

USD/JPY crashed below 106.00 pivot and touched multi-week low at 105.19 before stabilizing marginally above 106.00. Strong anti-risk sentiments drove JPY higher across the board as investors hurried to drive their assets into safe-heaven Yen. Both European and US stock markets ended the day deeply in red on the back of disappointing macroeconomic data. USD/JPY technical picture worsened after the pair broke below 106.00, though we still need another daily close below 106.00 to confirm the negative view. Ahead looks like a heavy economic calendar packed with important reports. It means that more volatility might be on cards. Don’t miss US industrial production and weekly jobless claims as they are expected to support USD across the board.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 106.21; initial support levels at 104.91, 103.90 and 102.60 with resistance above at 107.22, 108.52 and 109.53. Hourly Moving Averages are bearish, with the 200SMA bearish at 107.86 and the daily 20EMA bearish at 107.67. Hourly RSI is bearish at 35.

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