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USD/JPY: Elliott wave counts looks for 124 handle

FXStreet (Guatemala) - USD/JPY remains overall bid in the wider scheme of the charts, but the dollar has suffered another setback at the start of Dec and FOMC crunch time for 2015.

The yen has been supported on an optimistic BoJ of late but today was a different story and the greenback was shined on the back of the worst ISM manufacturing result since 2009 in a continuing downward cycle since Dec 2014 and extension in July 2015.

The implications behind the headline in inventories were worrisome as well, but the blow was somewhat cushioned by the jobs aspect of the intricate details behind the scenes. USD/JPY met a soft landing just below where the 100 SMA and 200 SMA meet on the hourly chart at 122.78 where support was derived and price lifted to current spot at 122.93 at time of writing.

The services sector in the US economy dwarfs the manufacturing and on that basis with core inflation projected to reach Feds target in given time frames, the FOMC could still favour a rate hike so long as wages and the Nonfarm Payrolls this week display robust data.

USD/JPY levels

Technically, the intraday Elliott wave counts are still positive, despite today's activity, bringing the top of the new range at 124 in focus while the August highs in 125.20's could also be a possibility on a follow through where strong resistance would be likely. Setbacks could stall at the 200 DMA, 121.48 today while the bottom of the range is 120.20.

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