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Forex pairs in this Article » USD/JPY (Bali) - The Japanese Yen recorded its second straight day of gains, an occurrence not seen since early November, time when the USD/JPY was still confined - not for long - in its 5-month tedious triangle. USD/JPY closed at 102.35.

Yen benefited by fall in US stocks

The fact that in the U.S. we saw decent economic releases, with the ISM non-manufacturing PMI at 53.9 vs 55.0 exp, ADP employment report at 215k vs 173k exp (highest in 2013), combined with a neutral Beige Book - Fed saw ‘modest to moderate’ growth with stronger manufacturing - led to believe that the taper may be closer, sending stocks lower, and with it, Yen crosses.

USD/JPY ichimoku readings

From an ichimoku standpoint, the daily starts to show signs of weakness, with price barely holding above the tenkan line, while the Kijun - still far just above 100.00 -has turned flat, suggesting a period of consolidation may lie ahead. On the H4 chart, despite today's ephemeral decline below 102.00, price continued to see strong buying interest on dips ahead of a thick kumo cloud, expected to provide formidable support.
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