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FxWirePro: USD/JPY poised for massive weekly gains, upbeat data and hawkish Fed boost dollar

Chart - Courtesy Trading View 

USD/JPY is on track to close the week with massive gains. The pair was trading 1.55% higher on the week till date.

The major was trading rangebound on the day as bulls consolidate previous session's 0.64% gains.

The Federal Reserve confirmed a rate hike coming in March, fueling speculation of at least four hikes this year. 

The greenback got additional support from upbeat data overnight, with Q4 GDP at 6.9%, beating expectations at 5.5%. 

Meanwhile, unemployment claims in the week ended January 14 met expectations by printing at 260K.

Major Support Levels: 

S1: 114.83 (20-DMA)

S2: 114.61 (21-EMA)

S3: 114.21 (55-EMA)

Major Resistance Levels: 

R1: 116

R2: 116.18 (Upper M BB)

R3: 116.66 (88.6% Fib)

Summary: The major has snapped a two week downside and has resumed bullish bias. Price action has broken above 20-DMA and is on track to test 116 levels.
 

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