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USD/JPY falls below 119.00 on profit taking

FXStreet (San Francisco) - After climbing over 200 pips from 117.10 to trade at highs since January 12 after the good US employment report, the USD/JPY started a consolidation phase that was followed by profit taking before the closing bell.

The USD/JPY is now 40 pips from highs and below the 119.00 handle. Currently, USD/JPY is trading at 118.82, up 1.09% on the day, having posted a daily high at 119.24 and low at 117.17.

The FXStreet OB/OS Index is reflecting extremely overbought hourly conditions, while the FXStreet Trend Index is slightly bullish.

USD/JPY Sentiment

According to Neal Gilbert from FOREX.com, the USD/JPY i 'finally breaking out of the weeks long range, thanks to NFP, is encouraging; perhaps now a rally can take shape.'

If the pair extends decline below 118.80, it will find next supports at 118.60 and 118.50. To the upside, resistances are at 119.20, 119.60 and 120.00.

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