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USD/JPY heading lower to 118.50

FXStreet (Edinburgh) - The greenback keeps the negative tone vs. the Japanese yen, driving USD/JPY to the lower end of the intraday band near 118.50.

USD/JPY eyes on Japanese, Chinese docket

There are no relevant releases in the US calendar tomorrow, leaving the pair’s attention to the key Tertiary Industry Index in Japan (0.1% MoM exp.) and the inflation figures in China for the month of January (1.0% YoY exp.).

With US Payrolls already digested by the markets, the developments from Greece are now poised to dictate the rules in the risk appetite universe, at least in the very near term.

USD/JPY key levels

At the moment the pair is losing 0.28% at 118.49 and a breakdown of 118.27 (Kijun Sen) would open the door to 117.94 (Tenkan Sen) and finally 117.02 (low Feb.5). On the upside, the initial hurdle aligns at 119.26 (daily cloud top) ahead of 119.65 (76.4% of 120.82-115.85) and then 119.97 (high Jan.8).

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