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Forex pairs in this Article » USD/JPY (London) - USD/JPY fell from 103.40 and reached a low on the handle of 102 before climbing back along a choppy pathway reaching 102.80 and before dropping again towards 102.20 support. Where now?

Derek Halpenny, at the Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the extreme positioning probably explains much of the correction we got yesterday with USD/JPY falling in line with renewed weakness in global equity markets – in particular in Europe yesterday where equity market weakness was most apparent. The realisation that a QE taper in December is still possible as that key FOMC meeting approaches on 17th-18th December is likely encouraging some reduction in risk. Meanwhile, ISM non-manufacturing did not extend its recent strong performance in Nov, coming in lower at 53.9 vs the 55.0 consensus. Oct new home sales to come in at 444K vs 432 consensus. Strategists at TD Securities sight further US data ahead and said, “Finally, we look for the Beige Book report to more closely reflect the Fed’s recent “glass half full tone””.

USD/JPY Levels

The 20 DMA is 100.59, the 50 DMA is 99.03 and the 200 DMA is 98.40. RSI (14) reads 29.08. Supports are ascending from 101.43, 101.74, 101.91. Spot is 102.26 while resistances are 102.58, 102.84, 103.00, 103.18 and
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