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Forex pairs in this Article » USD/JPY (Moscow) – USD/JPY recovered part of the early morning losses rebounding to 101.60 area at the moment.

USD/JPY may be ready for correction

USD/JPY was sold heavily on the GDP data from Japan along with the Nikkei. Remember that there is inverse correlation between the Nikkei and yen moves, as the weakness of stock markets triggeres the flight to safe haven in form of Japanese currency. As we saw the bounce up of stock market after this weakness, the pair moved higher. USD/JPY failed to resume the rise during the last week, but it has opportunity to do it this time. And most probably the rally will be triggered not by positive US sentiment, but the correction of Nikkei that is showing 12% decrease from the beginning of the year. Japan will publish a series of interesting reports this week, and better than expected numbers may support the national stock market fueling the strengthening of the pair. In this case the initial target may be at 102.30 resistance level.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 101.93, with support below at 101.44, 101.07 and 100.58, with resistance above at 102.30, 102.79, and 103.15. Hourly Moving Averages are bearish, with the 200SMA at 102.00 and the daily 20EMA at 102.54. Hourly RSI is neutral at 37.
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