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USD/JPY flirts with 120, Japan in recession?

FXStreet (Mumbai) - The USD/JPY pair touched 120.00 handle in Asia after weak Japanese export data triggered speculation that the economy could be suffering from recession.

Fourth consecutive day of gains

The pair is for the fourth consecutive session and appears poised to extend gains during the European and US session. Japanese exports rose just 0.6% in the year to September; its slowest growth since August last year. The weakness is hardly surprising, given the china slowdown and aggregate demand deficiency in the global economy.

Still, the number was enough to trigger speculation that the economy is faltering. It remains to be seen if the markets penalize Yen during the day on increased hope of more BOJ easing in the near future.

USD/JPY Technical Levels

The immediate resistance is seen at 120.52 (50-DMA), above which the pair could rise to 120.91 (200-DMA). A daily close above the same would open doors for 122.06 (100-DMA). On the other side, support is seen at 119.55 (hourly 200-MA) and 119.30 (hourly 100-MA).

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