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USDJPY Retracing Earlier Gains In Recent Trade

JPY
  • US yields and Equities grinding lower from their earlier peaks weighing on USDJPY, currently trading below 123.50 after trading as high as 125.09 during the European morning.
  • As noted earlier current momentum suggests the USD still has the potential to extend this bull cycle, although it is worth noting that the pair is registering in extremely overbought territory on the daily frequency.
  • Additionally, with the pair testing close to H2 2015 highs, there could well be a degree of profit taking in play after the sharp rally throughout March.
  • Upside targets shift higher to 125.28 and 1.2586, the 2015 high. Today’s low at 121.97 should be the first support to monitor with last Thursday’s low of 120.95 is still seen as more significant support.

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