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Forex: USD/JPY testing session highs on better US ISM

The Japanese yen leapfrogged from the proximities of 93.10 to the current area around 93.50 after the US ISM Non-Manufacturing PMI rose to 56 during February, exceeding estimates at 55.0 and January’s 55.2, pushing the cross to retest overnight highs.

Against the backdrop of the comments by BoJ Deputy Governor candidate K.Iwata, Currency Analyst at BTMU Lee Hardman argued that he “reiterated his view that it is important for the BoJ to “expand the monetary base significantly” emphasizing the importance of boosting inflation expectations to defeat deflation. He believes that the BoJ should purchase JGBs with maturities greater than five years”.

As of writing, the cross is losing 0.02% at 93.45 with the next support at 92.90 (MA200h) ahead of 92.55 (MA30d) and then 92.44 (low Mar.1).
On the upside, a breakout of 93.54 (high Mar.5) would expose 93.73 (high Mar.4) and then the psychological level at 94.00

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