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USD/JPY: Bulls in control, revisits daily highs

FXStreet (Mumbai) - Renewed broad based US dollar strength coupled with positive European equities continue to boost the upside in the USD/JPY pair.

USD/JPY re-attempts 200-DMA

Currently, the USD/JPY pair trades 0.22% higher at 121.33, within a shouting distance of the daily highs recorded at 121.38. The bid tone around the USD/JPY pair keeps strengthening in tandem with the European stocks as favourable risk-sentiment continues to diminish the bids for the yen as a safe-haven.

While steep losses in EUR/USD on the FOMC/ECB divergence continue to boost the US currency against its major competitors, thus benefiting the USD/JPY pair. The USD index rises to fresh weekly highs at 97.57, up 0.33% so far.

Looking ahead, a host of important data from the US, including the ADP jobs report is lined up for release in the New York session. Besides, the Fed Chair Yellen’s speech will remain the main highlight for today.

USD/JPY Technical levels to watch

The prices re-attempts near 200-DMA at 121.42, beyond which doors open for a test of 121.58 (100-DMA) and from there to 122 handle. While to the downside, the immediate support lies at 121/120.95 (today’s low/daily pivot), below which 120.57 (Nov 3 Low) would be tested. A failure to breach the last, the prices could fall further towards 120 handle.

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