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Forex pairs in this Article » USD/JPY (Barcelona) - The USD/JPY opened up higher Tuesday on some renewed Yen weakness and the general risk-on attitude that is permeating global financial markets recently.

USD/JPY traders keep up trend intact after Japanese data came out sluggish

There is no US data due out Friday. However, there was a long list of Japanese data points that just came out, including:

• Japanese Manufacturing PMI came out and showed a modest m/m gain – Yen bullish
• Japanese CPI came out and also showed a modest m/m gain – Yen neutral
• Japanese Household Spending came out much lower than expected – Yen bearish
• Japanese Unemployment came out slightly higher than expected – Yen bearish
• Japanese Industrial Production came out lower than expected – Yen bearish
• Japanese Retail Sales came out slightly better than expected – Yen bullish

The net effect of the data today was that the Yen remains under pressure – at least versus the greenback.

Technical outlook for USD/JPY

Technicians now say the USD/JPY is clearly in the midst of a third wave move higher that should take the cross up to points north of 106. Prior to that level being tested, they say there is a good chance that some profit-taking comes into play at around 105.50. The first two support levels for the cross come in at 103.73 and 103.54 – the previous resistance levels for USD/JPY.
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