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Forex: USD/JPY hanging around 96 round post-BoJ nominees voting

USD/JPY keeps glued so far to the 96.00 round level since week started, last at 96.03, off session highs at 96.26, following the Japanese upper house voting yes for all three BoJ nominees. “Still talk in the markets of an ‘emergency’ BOJ meeting sometime next week. Seems unlikely, but can’t be ruled out,” said ForexLive editor Eamonn Sheridan once the nominees have been confirmed. Nikkei index trades above the 11400 points mark, up +0.64% for the day so far.

According to latest Reuters poll on USD/JPY released March 6, for 1-month in advance, non of the 61 contributors see the pair higher from these levels, being 4Cast and Morgan Stanley among the most optimistic expeting something around 95.00/95.50, while most pessimistic is HSBC calling for a 85.00 level, perhaps way to extended. The median forecast for 1-month in advance is 93.00, 94.00 for 3-month, and 95.00 for 6-month, going higher around 97 for 1-year.

Immediate support to the downside for USD/JPY lies at yesterday's lows 95.68, followed by Wednesday's weekly low at 95.43 and March 07 highs at 95.09. To the upside, closest resistance shows at recent session highs 96.26, followed by yesterday's/March 08 highs aty 96.58, and Tuesday's fresh 3.5-year highs at 96.70.

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