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USD/JPY finally meets supply but remains better bid

FXStreet (Guatemala) - USD/JPY is trading at 114.58, up 0.80% on the day, having posted a daily high at 114.86 and low at 113.41.

USD/JPY is trading within overbought territory but still continues to advance on the back of a dovish BoJ and recent aggressiveness that has so far been uncontested by the wider community. Governor Kuroda’s speech, titled ‘ensuring achievement of the price stability target of 2%’, highlighted the dovish BoJ stance yet again further adding to the Yen’s weakness in what has been sighted as contributor in a well-orchestrated plan by the central bank to weaken the Yen. Meanwhile, the divergence between the BoJ and Fed is compelling and regardless of the overbought scenario, the pair remains better bid on the day.

The greenback has indeed been volatile around data releases today. Firstly, the ADP employment rose by 230,000 last month following 225,000 in September and beat the expectations of 220,000, setting us up for the Nonfarm Payrolls at the end of this week for what come as a disappointment with a slightly lower consensus forecasted than the previous month. The pair rallied on the back of the result but was then capped and supply was met with the disappointing ISM Non-Manufacturing PMI dropping to 57.1 in October.

USD/JPY noteworthy levels

Current price is 114.51, with resistance ahead at 114.55 (Daily Classic R2), 114.86 (Daily High), 115.02 (Daily Classic R3), 115.69 (Weekly Classic R2) and 118.89 (Weekly Classic R3). Next support to the downside can be found at 114.21 (Hourly 20 EMA), 114.11 (Daily Classic R1), 114.08 (Yesterday's High), 114.01 (Weekly Classic R1) and 113.78 (Monthly High).

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