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USD/JPY back to test 107.00

FXStreet (Edinburgh) - The greenback is now losing its shine vs. its Japanese counterpart, dragging USD/JPY to challenge the key support at 107.00 the figure.

USD/JPY capped at 107.40

The pair managed to come back from recent troughs in the vicinity of 105.00 the figure last week, following a renewed demand for the US dollar. However, in the light of scarce data releases today, spot would likely be driven by the broader risk trends and market chatter regarding the GPIF. Next of note in Japan will be the All Industry Activity index while Existing Home Sales will be in the limelight tomorrow in the US economy. According to Quek Ser Leang, Market Strategist at UOB Group, “. While further up-move is not ruled out, the current rally appears to be running ahead of itself and a move above 107.50 is unlikely. However, only a break back below 106.70 would indicate that the upside pressure has eased”.

USD/JPY levels to consider

At the moment the pair is advancing 0.17% at 107.08 and a surpass of 107.49 (high Oct.15) would expose 107.63 (high Oct.13) and finally 108.15 (high Oct.10). On the downside, the immediate support lines up at 106.95 (low Oct.20) followed by 106.14 (low Oct.17) and then 105.51 (low Oct.16).

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