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USD/JPY bounced off 114.00

FXStreet (Edinburgh) - After hitting fresh multi-year tops beyond 115.50, USD/JPY sparked quite a deep correction to the vicinity of the psychological support at 114.00.

USD/JPY took a breather, eyes on Payrolls

The USD continues it march north (almost) unabated in the second half of the week, reaching the mid-115.00s overnight, area last seen in October/November 2007. The greenback thus extends its needle-like upside since the FOMC meeting, bolstered later by positive readings in the US economy and the extra easing measures from the BoJ in its meeting last Friday. Ahead in the day, US initial Claims (285K exp.) and speeches by Fed’s Evans and FOMC’s Powell will be the most significant events, preceding tomorrow’s critical US Payrolls for October. “If as expected the non-farm payrolls report reveals strong employment growth, a further decline in the unemployment rate, and evidence of pick up in earnings growth in October it will likely trigger further US dollar gains in the near-term”.

USD/JPY relevant levels

The pair is now losing 0.17% at 114.55 and a breakdown of 114.06 (low Nov.6) would open the door to 113.42 (low Nov.5) and then 113.15 (low Nov.4). On the upside, the initial hurdle aligns at 115.52 (2014 high Nov.6) followed by 115.93 (high Nov.1 2007) and finally 116.00 (psychological level)

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