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Forex: USD/JPY to session lows not too convinced on Kuroda's words

With local share markets deeply in the red but Nikkei index that prints fresh 4 year highs above the 11700 points mark, going against the current negative flow in equities, USD/JPY test session lows last at 93.33, off recent session highs at 93.73. BoJ nominee Kuroda is still talking to Japan parliament ahead of next March 11 vote, saying he will do “whatever it takes” to end deflation in the country.

“At this point,” says BK Asset Management managing director Kathy Lien, “we believe that USD/JPY is poised for test of its 2.5 year high of 94.75 but a break above 95 will require dovish comments from Kuroda,” she adds. From the technical perspective, CMT and FXstreet.com Independent Analyst Fan Yang believes: “The USD/JPY remains bullish as it held above 92.00 and pushed to 93.50 to end last week,” the analyst says, expanding: “The focus is back on the 95.00 handle, which is the 2010 high. It remains that a break and hold under 92.00 is needed as a first sign of topping and possible bearish correction,” he concludes.

Immediate support to the downside for USD/JPY lies at Friday's London session highs 93.03, followed by Feb 28 highs at 92.85, and Friday's lows at 92.40. To the upside, nearest term resistance shows at Friday's/recent session highs 93.70/5, followed by Feb 20 highs at 94.05, and Feb 24 highs at 94.60.

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