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USD/JPY is too shy to move higher

FXstreet.com (Moscow) - USD/JPY spent choppy session in a small range reaching 102.79 early in Asia before falling back to 102.60.

Do you believe in USD?

The released in the morning Corporate Service Price Index for December showed further rise of the inflation in Japan confirming that Abe’s hopes and promises are materializing. Nevertheless, the market completely ignored the report staying focused on the coming FOMC meeting. USD still cannot get enough demand to resume the full-blown rise against the yen, though the Japanese currency is not favored by the traders at the moment judging by its crosses. The released overnight US housing data only strengthened the doubts about the stability of the US recovery. Nevertheless, the market believes in Bernanke, and waits for further QE3 tapering during the nearing FOMC meeting. This notion may give the pair enough support to reach the initial resistance at 103.14.

What are today’s key USD/JPY levels?


Today's central pivot point can be found at 102.43, with support below at 101.92, 101.21 and 100.70, with resistance above at 103.14, 103.65, and 104.36. Hourly Moving Averages are bearish, with the 200SMA at 103.91 and the daily 20EMA at 103.82. Hourly RSI is neutral at 52.

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After reaching the local high at 0.8276 NZD/USD retraced back to 0.8260 where it found support.
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