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USD/JPY key range 118.50-121.00 - BTMU

FXStreet (Guatemala) - Analysts at Bank of tokyo Mitsubishi explained that after last week’s disappointing NFP report USD/JPY tested key technical support from its 55-week moving average at 119.30 which is holding for now supporting our neutral bias for the week ahead.

Key Quotes:

"The risks appear skewed to the downside in the near-term and a weekly close below would likely trigger accelerated yen strength in the near-term. The BoJ continues to provide no clear signal that further easing is imminent encouraging the yen to trade on firmer footing.

BoJ Governor Kuroda highlighted the resiliency of Japan’s economic growth despite the increased risk that it has fallen into technical recession, and deriving reassurance from the recent firming in in underlying inflation measures.

Still expectations for further BoJ monetary easing are likely to linger helping to support USD/JPY especially if incoming economic data from Japan continues to disappoint. Global investor concerns over slowing global growth remain elevated as well acting as a weight on USD/JPY."

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