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Forex pairs in this Article » USD/JPY (London) - USD/JPY has been rejected at the European opening hours highs.

On the London open, USD/JPY fell from 100.76 to the previous and overnight support/resistance area, around 100.60. In many respects, USD/JPY above 100.0 is of no surprise, in an environment of continued demand for the greenback, although on the other hand, it may continue to face northerly winds given the net selling of foreign bonds by the Japanese and the Tankans survey’s indication that Corporates don’t expect USD/JPY gains to be sustained. This afternoon may be a good test for the pair when the US releases the ADP Employment report. Markets will consider the report as a valuable indicator for next Friday’s NFP print (consensus 165K) and it might just make or break today's sentiment.

USD/JPY’s next resistance, 101.28

Karen Jones, analyst at Commerzbank said that USD/JPY has eroded the 99.89/100.00 resistance zone, made up of the April highs, 61.8% Fibonacci retracement of the May-to- June decline and psychological resistance. “The top of the cloud offers additional resistance at 101.28 and we support this may see the market struggle.” She said that above the cloud will target the 103.74 May high, and dips lower are likely to now be well supported by the base of the cloud at 98.15 and the 20 day ma at 97.41.
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