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USD/JPY Holds Above Y110.00, Awaits FOMC Directional Impetus

JPY
MNI (London)
  • USD/JPY maintains it move back above Y110.00 but upside progress hampered by resistance into Y110.20 (Y110.17 Jun15 high/Y110.22 falling trend resistance off Mar31 high).
  • A break here to expose the Jun04 high at Y110.33 ahead of Y110.50/55 with stronger interest into Y110.75/85.
  • Support has moved up to Y109.80/75 ahead of Y109.60/50, a break to bring the stronger support area around Y109.20 back into play.
  • Focus on this evening's FOMC/Fed Powell press conference 1800GMT/1830GMT respectively with strength of any taper talk, along with focus on any move in the Dot Plot, to determine next USD direction.
  • MNI Techs: USDJPY is holding onto this week's gains and remains above support at 109.19. The sharp sell-off on Jun 4 and 7 resulted in a print below former support at 109.33, Jun 1 low. However there has not been any bearish follow through and instead, with the pair firmer once again, attention is on 110.33, Jun 4 high. A break would remove recent bearish concerns and refocus attention on 110.97, this year's high print. Support lies at 109.19, Jun 7 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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