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USD/JPY losing grip of 116 handle; fundamentals are compelling

FXStreet (Guatemala) - USD/JPY is trading at 115.82, up 0.04% on the day, having posted a daily high at 116.21 and low at 115.74.

USD/JPY is taking in some profits and supply pulls the pair back down below the 116 handle having reached new highs at the end of this weeks session in Asia. We had a spike on the Tokyo open that was short lived and without further impetus, the fruit of the tree has been taken.

115.80 needs to hold if the Europeans wish a retest of handle and resistance at 116.20 for a positive close on the week and making way for further highs into next. What will be key next week are the FOMC minutes and these will be scrutinised for further clues as to the timings of the Fed’s first rate hike. This coupled with the ongoing fundamentals from Japan remain compelling as Ivan Delgado, head of Asian editor's explains.

USD/JPY noteworthy levels

Spot is presently trading at 115.82, and next resistance can be seen at 115.96 (Weekly Classic R1) and 116.12 (Daily Classic R1), 116.25 and 116.60. Next support to the downside can be found at 115.80, 115.64 (Hourly 20 EMA), 115.50, 115.10 and 114.90.

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