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Forex pairs in this Article » USD/JPY (Barcelona) - The USD/JPY rallied on continued bullish data out of the US on Thursday – but it failed to conquer important technical resistance.

Dollar strength after flurry of data and tapering prospects boosted USD/JPY

The USD/JPY reacted bullishly to better PMI and leading indicator data along with the growing belief that the Fed’s tapering program will be commencing sooner rather than later. The cross even managed to disregard weaker-than-expected weekly jobless claims and housing price index data on its way higher.

All that being noted, the USD/JPY’s rally failed to take out the very important “correction resistance” at 98.86. Unless that happens, there will be more downside ahead for USD/JPY.

USD/JPY still under correction resistance

The USD/JPY’s long-term outlook is bearish according to technicians. They have the ultimate downside target at 92.53. As noted above, the key short-term resistance for USD/JPY comes in at 98.86. Meanwhile, shorter-term support comes in at 98.08 (horizontal line) and is backed up by additional horizontal line support at 97.83.
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