USD/JPY off highs, near 121.40

FXStreet (Edinburgh) - The US dollar is now easing some ground vs. the Japanese currency, taking USD/JPY back to the 121.40 area.

USD/JPY unstoppable, closer to 122.00

The pair rapidly left behind the psychological barriers at 120.00 and 121.00, backed by the relentless bid tone around the greenback and the persistent depreciation of the yen. In the near term, the USD dynamics will continue to drive the pair; however, markets will start to gauge the potential outcome of the snap elections in Japan (December 14th), adding volatility to the spot. Next of relevance in the data space will be the critical GDP figures in the Japanese economy, due at the very beginning of the next trading week. Market consensus expects the economy to have contracted at an annual pace of 0.5% and 0.1% inter-quarter.

USD/JPY key levels

At the moment the pair is up 1.46% at 121.42 with the next resistance at 122.00 and 123.00 (psychological levels) followed by 123.67 (high Jul.9 2007). On the flip side, a breakdown of 119.71 (low Dec.5) would target 119.33 (low Dec.4) en route to 119.13 (low Dec.3).

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