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USD/JPY spikes, nears key fib level

FXStreet (Mumbai) - The buying interest in the USD/JPY spiked in early Europe, sending the pair to a session high of 119.77 levels and near 38.2% of 125.856-116.082 located at 119.81 levels.

Trades above hourly 200-MA

The spot now trades above its hourly 200-MA currently located at 119.56. The bid tone on the USD improved against the Yen, but the greenback is being offered against EUR and GBP, thereby leading to a rise in the EUR/JPY and GBP/JPY cross.

The European equities began the day on a upbeat note leading to the risk-on moves in the currencies space. Ahead in the day, the European equities and the US housing data could hog the limelight.

USD/JPY Technical Levels

At 119.68, the immediate resistance is seen at 119.81 (38.2% of 125.856-116.082), followed by a hurdle at 120.00, above which the pair could rise to 120.60 (50-DMA). On the other side, a break below 119.56 (hourly 200-MA) would open doors for a re-test of 119.16 (hourly 100-MA).

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