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USD/JPY bulls have picnic at 112.71

FXStreet (Moscow) - USD/JPY  opened with an upside gap on Monday; the pair stopped within a whisker of 113.00 pivot and retraced towards 112.71.

USD/JPY proved to be a huge loser of the week as BOJ shook the markets with its totally unexpected decision to extend its bond buying program. Considering the markets’ focus on monetary policy divergence between FED and the rest of the world, JPY speculative selling might gain traction, despite its deeply oversold state. Japanese markets are closed for Culture Day, but the currency is still affected by speculative flows. Later during the day keep an eye at US Manufacturing ISM indices. Weaker than expected numbers might trigger the USD/JPY downside correction. Technically, the nearest support is seen at 112.50 with demand on approach and option barrier. Once it is cleared out, 112.00/111.90 will come into focus. The resistance is seen at 112.97/113.00. Strong offers, option barriers and stops mean that bulls might have hard time trying to get higher.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 111.33; initial support levels at 110.17, 108.02 and 106.86 with resistance above at 113.49,114.65 and 116.80. Hourly Moving Averages are bullish, with the 200SMA bullish at 108.43 and the daily 20EMA bullish at 108.29. Hourly RSI is bullish at 76.

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