USD/JPY: Downside prevails
USD/JPY attempted to rally on Thursday reaching as high as 82.81 before the bears took the control resulting in the formation of a shooting star on the daily chart. For now the yen is holding onto the 82 level against the dollar with the downside prevailing both from a technical and a fundamental point of view. With the Bank of Japan likely to continue to keep the yen weaker and the current pullback following the explosive move higher at the beginning of the weak, the focus for the day remains at the short-term support levels 81.75 and 81.55. With the long-term trend remaining on the upside buying pullbacks all the way down to 81 could be seen as a good buying opportunity for longer term trading. On the economic data front things are a little quiet with the US Fed Balance Sheet and US Money Supply due for release in the evening.
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