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Forex pairs in this Article » EUR/USD, USD/JPY (Moscow) – USD/JPY stalled around 103.00 area of support, after losing almost 150 pips during Thursday on broad-based USD weakness.

US data killed the hopes

The pair is testing a round support level at 103.00, though it looks like it found the bottom for the moment. The released overnight weaker than expected US housing data only convinces traders that the FED may take a pause before another QE3 reduction. Given the nearing FOMC meeting the trades on USD/JPY will be all about tapering expectation, and for now we don’t see positive catalysts to trigger the US Dollar recovery by the end of the week. Thus, we expect another selloff with initial target at 102.47 if the Europeans decide to react to Thursday’s US data.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 103.66, with support below at 102.47, 101.77 and 100.58, with resistance above at 104.37, 105.56, and 106.26. Hourly Moving Averages are bearish, with the 200SMA at 104.19 and the daily 20EMA at 104.13. Hourly RSI is neutral at 33.
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