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Forex pairs in this Article » USD/JPY (Barcelona) - The USD/JPY blew off evidence that Japanese deflation is no longer a problem and instead focused on weaker-than-expected industrial production as it moved closer to an impressive breakout above 98.52 resistance.

More data due out that may drive the action Friday

In several hours, Japanese housing starts and construction orders will be released – neither of which really has the potential to move USD/JPY in a big way. Later in the day, however, several US data points (personal income, spending and consumption numbers, Chicago PMI data and the University of Michigan Consumer Sentiment Index) are due out and could move the cross meaningfully.

Technical outlook for USD/JPY

Technicians are pointing to the 98.52 level as a short-term key resistance level for USD/JPY. An hourly close above that level will clear the way for a move up to the 8/23 high of 99.42. A failure there, however, will likely lead to a sharp move lower – perhaps to below 96. An hourly close below 97.46 will be a sign that USD/JPY bulls are in trouble.
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