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Forex pairs in this Article » USD/JPY (Córdoba) - The USD/JPY entered in a quieter phase after printing a fresh 5-year high during the European session, despite the BoJ decided to keep its monetary policy unchanged.

The USD/JPY reached its highest level since Oct 2008 at 104.59 as the greenback remained underpinned by a rise in US Treasury yields after the Fed decided to taper its QE program Wednesday. However, the USD/JPY lost momentum afterward and was confined to a range over the last hours. At time of writing, the USD/JPY is trading at 104.43, still up 0.2% on the day.

"Although BOJ did not add 'fuel to the fire' by increasing accommodation just as the Fed was removing it, the central bank's steadily dovish stance was enough to convince currency traders to take USD/JPY higher as the divergence in the monetary policies of the two economies will become more pronounced in 2014", says Boris Schlossberg, analyst at BK Asset Management.

USD/JPY levels to watch

In terms of technical levels, the USD/JPY could face immediate resistances at 104.59 (5-year high) and 105.00 (psychological level), while supports are seen at 104.20 (daily low) and 104.00 (psychological level).

"In North American trade the market will get the final US GDP revision for Q3 with market looking at no change from the prior 3.6% reading", says Schlossberg. "However if the data is adjusted upward even slightly it may provide the boost for USD/JPY to push towards the key 105.00 level as the day progresses".
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