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USD/JPY took a pause around 7-year high

FXStreet (Moscow) - USD/JPY touched almost 7-year high at 111.52, before taking a pause around 111.40.

The BOJ expanded its stimulus at the right time – right when the Fed’s readiness to normalize the monetary stance brought to the scene the rate divergence issue again. And in such circumstances the yen will have hard time recovering, at least, in the nearest weeks. Until the market is convinced the US monetary authorities will start hiking rates in the nearest quarters, the Japanese currency may stay under pressure on the back of ultra-easy stance of the BOJ. Short-term pair corrections lower are not ruled out at this point, given the impressive rise of the USD, however, the medium-term outlook for the pair is likely to stay bullish.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 110.28; initial support levels at 109.88, 109.14 and 108.40 with resistance above at 112.13 and 112.75. Hourly Moving Averages are bullish, with the 200SMA bullish at 107.94 and the daily 20EMA bullish at 107.87. Hourly RSI is bullish at 81.

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