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USD/JPY got the fuel from Turkey

FXstreet.com (Moscow) – USD/JPY ran up to 103.43 high in early Asia, meeting sellers ahead of 103.50, and reversing the move to 103.25 at the moment.

USD/JPY gains the confidence

The initial run to 103.43 was triggered by the moves from the central bank of Turkey. It decided to raise rates from 7.75% to 12%, thus reducing the tension at the emerging markets, and decreasing the demand of risk-off currencies. Now the eyes of traders turn to American session. The released overnight US data gave mixed signals continuing the recent trend of contradictory reports from American economy. Although employment data was weak in December, the unemployment rate reached 6.7 per cent now being within spitting distance from the FED target at 6.5%. Nevertheless, the consumer confidence grew better than expected, as well as the latest retail sales. It means, the economic environment from December meeting changed for the better, giving Bernanke all the reasons to go on with asset purchase reduction. We expect the moderate pair appreciation up to the 104.05 resistance level during the whole day.

What are today’s key USD/JPY levels?


Today's central pivot point can be found at 102.87, with support below at 102.47, 102.08 and 101.68, with resistance above at 103.66, and 104.05. Hourly Moving Averages are bullish, with the 200SMA at 103.71 and the daily 20EMA bearish at 103.73. Hourly RSI is neutral at 58.

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