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USD/JPY clings to 119.00

FXStreet (Edinburgh) - The US dollar extends its buoyant tone vs. the Japanese currency on Tuesday, with USD/JPY keeping the trade above the 119.00 handle.

USD/JPY propped up by US yields

The current upside in the US 10-year yields is backing the upbeat momentum in the US dollar, which managed to revert the initial soft tone against its G10 peers. In an otherwise calm session, Japanese Money Supply M2+CD expanded 3.4% in January and the key Tertiary Industry Index unexpectedly contracted 0.3% inter-month in December.

Next on tap in the US calendar, Fed’s Lacker is due to speak later followed by the releases of the NFIB Business Optimism Index in January (101.3 exp.).

USD/JPY key levels

The pair is now advancing 0.40% at 119.07 and a breakout of 119.65 (76.4% of 120.82-115.85) would open the door to 119.88 (high Jan.9) and finally 119.97 (high Jan.8). On the flip side, the next support lines up at 118.33 (low Feb.9) followed by 117.99 (10-d MA) and then 117.94 (Tenkan Sen).

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