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Forex pairs in this Article » USD/JPY (Edinburgh) - The prevailing risk-on tone is pushing the USD/JPY back to the mid 102.00s area on Friday, bouncing off session lows near 102.10.

USD/JPY further upside ahead?

Despite the prevailing trade favouring the riskier assets, the JPY found extra selling pressure on higher than expected consumer prices in the Japanese economy during November, although industrial production expanded below estimates and the unemployment rate remained unchanged at 4.0%. According to Derek Halpenny, European Head of Global Markets Research at BTMU, “While this can be viewed as all positive in terms of progress on “Abenomics”, the real test as always will be whether this translates into higher wages to make inflation sustainable… Today’s developments will add further support for USD/JPY and even if US employment is weaker than expected next week, we doubt USD/JPY would correct substantially lower”.

USD/JPY key levels

As of writing the pair is up 0.19% at 102.46 with the next resistance at the psychological level at 103.00 followed by 103.57 (high May 23) and then 103.74 (2013 high May 22). On the downside, a breach of 102.11 (low Nov.29) would aim for 101.94 (low Nov.28) and finally 101.23 (MA10d).
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