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USD/JPY catching an early bid on weak Japanese data

FXStreet (Guatemala) - USD/JPY is currently trading at 122.62 with a high of 122.66 in Asia scored pre Tokyo and a low of 122.57.

USD/JPY has found a bid on the back of the mixed Japanese. Firstly the CPI's arrived at 0.3% vs 0.2% expected year on year, a minor uptick, but the actual disappointments were the Overall household Spending year in year that came in at 12.4% vs 0.1% expected. However, liquidity will be thin over the Thanksgiving break and Tokyo may be reluctant to create large positions in to the closing day.

Instead, the Yen is likely to driven by the European shift and positioning ahead of the expected US data flows in December where the FOMC finally come together for the last meeting this year to decide upon the fate of the Federal Reserve's funding rate. Year-end repatriation flows should also be taken into consideration as these are usually supportive to the greenback at this time of year.

USD/JPY levels

Technically, the upside has 122.92 to penetrate as yesterday's highs ahead of 123.20. There will not be any real conviction until the 18th August highs of 124.46 and through the cluster of MA's and business between July and end of August rising channel.

Below the 122 handle comes the 121.78 100 DMA and 200 DMA at 121.42. The psychological 120 level is a key target and the 118.00 level comes as core objective in the medium term. 122.23 is the key support guarding the immediate downside.

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