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USD/JPY consolidates on 107 handle

FXStreet (Barcelona) - USD/JPY is trading at 107.14, up 0.13% on the day, having posted a daily high at 107.39 and low at 106.79.

USD/JPY has retreated from the mid point of the 107 handle but remains in positive territory with the CPI in the US offering the pair a well deserved lift, after a number of sessions remaining within the vicinity of 107 on stubborn and relentless attempts to gain the handle. The price is contained between support and resistance and key barriers while R2 at 107.55 remains a blockade that would open up R3 and the 108 handle if the bulls were so inclined to get behind the pair and in force.

Meanwhile and worth noting from overnight, the Ex Government official Watanabe whose comments were always highly regarded when he was in office, suggested that a move to 104/105 and recent moves reflected fundamentals. He doubts that the BOJ is going to intervene so long as the pace of currency movements remained gradual. He also mentioned that he suspects that the BOJ will be holding policy steady and can’t foresee them easing any more if inflation were to exceed 1.5% by end 2015.

USD/JPY noteworthy levels

Current price is 107.14, with resistance ahead at 107.28 (Daily Classic R1), 107.39 (Daily High), 107.39 (Daily 20 SMA), 107.56 (Daily Classic R2)
and 107.94 (Weekly Classic R1). Next support to the downside can be found at 107.08 (Hourly 20 EMA), 107.04 (Yesterday's High), 107.00 (Weekly High), 107.00 (Daily Open) and 106.86 (Hourly 200 SMA).

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