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Technical Analysis: USDJPY struggles between 100/200-day EMA during the key week

The USDJPY pair's repeated bounces off 100-day EMA have recently been tamed by the 200-day EMA, which in turn confines the pair's trading range between 108.40 and 108.80 respectively. Though, increasing odds of the US-China trade deal supports the pair's run-up to the monthly high of 109.75 in a case of the pair's rise past-108.80. Also, 110.00 and May 21 high near 110.70 could entertain bulls during the quote's further advances. It's worth mentioning that the UK election and the year's last FOMC also contribute toward making this week the key one.

If at all the Trump administration disappoints the global markets by levying tariffs on China, up for activation on December 15, the pair can plummet to November month low near 107.88. Additionally, 50% Fibonacci retracement level around 107.00 and September month bottom close to 61.8% Fibonacci, at 106.45, might please bears afterward.

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