USD/JPY: Sharp decline in Tokyo afternoon, 118.35/40 support eyed

FXStreet (Bali) - USD/JPY has accelerated its losses in the Tokyo afternoon, currently approaching key support at 118.30/25 after a sharp descend from 119.00.

There is a large option expiry from 118.50, which should see solid bids re-emerge soon given sharp selling seen. Nikkei 225 is currently down almost 0.50% ahead of the weekend.

Jim Langlands, Founder at FXCharts, notes: "On the downside, support will arrive nearby at 118.42 (61.8% of 117.17/120.46) and then at the 200 HMA at 118.35. A break of this will see a move to the daily Kijun (118.15) and then to 118.00."

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Analysts at UOB Group, maintain a bullish outlook on GBP/USD, expecting the pair to target 1.5590 next.
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Retail investors still see USD/JPY upside – Nomura

Yujiro Goto, Research Analyst at Nomura, notes that Retail investors remain relatively positive on Japanese equities and see upside risks in USD/JPY, while their bullish view has declined from a month ago.
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