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USD/JPY scales remains in favour of the greenback

FXStreet (Guatemala) - USD/JPY is trading at 118.10, up 0.09% on the day, having posted a daily high at 118.29 and low at 117.88.

USD/JPY is a non-event on the open in Tokyo with much of the damage already done, we are now at levels which require further impetus to tip the scales.

118.00 was not easy to come by, although we found some fresh bids through the figure and into an impressive start on the handle and penetrating the 118.20 resistance was not much of a task. However, supply came in heavily thereafter at the highs in a somewhat delayed fashion. Further advances could find next resistance at 118.64 (Weekly Classic R2), 120.45 (Weekly Classic R3).

For the mean time, the themes remain the same, unchanged and the divergence between the Fed and BoJ should tip the scales in the greenbacks favour, unless, there are continued cautionary rhetoric from the Fed members in respect of a slower global economy impacting on the US and their inflation outlook that could warrant a set back, in the opinion of the forward markets also, with regards to the Fed’s funding rates and timings of an interest rate hike in the US economy of 2015. Such an air of caution has already been documented in the latest set of FOMC minutes overnight in the US.

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