- USD/JPY is trading in a narrow range, up 0.08% on the day, bias neutral.
- Focus remains on the Bank of Japan which will wrap up the year with a meeting on December 21.
- Analysts expect BoJ to hold current policy settings, confirming its commitment to its huge QQE programme.
- However, the tone of Governor Kuroda speech is likely to be watched closely by the market for clues.
- Technical studies are neutral to slightly bearish. The pair finds strong support at 20-DMA at 112.32 ahead of 200W SMA at 112.28.
- Break below above mentioned support levels will see further downside, raising scope for test of 111.90 (converged trendline and 38.2% Fib retrace of 107.318 to 114.737 rise).
- 50-DMA is immediate resistance at 112.85, further upside likely on break above.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -17.5529 (Neutral), while Hourly JPY Spot Index was at -19.6924 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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