USD/JPY Forecast: struggling at key Fibonacci resistance


The USD has erased all of this week losses against most of its rivals, and even advanced to fresh weekly highs. But the USD/JPY pair is a big exception, barely able to recover the 120.00 level this Thursday. 


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The pair was flirting with the 125.00 level a couple of weeks ago, but failure to overcome the figure put traders into selling mode, which was exacerbated during the last "black Monday" with the pair falling down to 116.31, almost 900 points down in less than 2 weeks. 

The upcoming US GDP release can be a make it or break it for the pair that remains capped by the 50% retracement of the last two weeks decline. Having set a daily high of 120.56, an acceleration through the level should lead to an upward continuation towards 121.30, the 61.8% retracement of the same rally. Below 119.80 on the other hand, the pair can slip down to the 119.20/30 region, the 38.2% retracement of the same rally. 

View Live Chart for the USD/JPY 

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