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USD/JPY hovers near 6-year high

FXStreet (Córdoba) - USD/JPY is taking a breather after hitting fresh 6-year highs, as the dollar corrects lower following impressive gains.

USD/JPY has pulled back from a high of 106.38 scored earlier on the day but the retreat has been contained by the 106.00 area so far. At time of writing, USD/JPY is trading at 106.17, still 0.15% above its opening price.

The greenback gained 0.97% versus the yen Monday, fueled by higher US yields and a San Francisco Fed report suggesting that investors are underestimating how quickly US interest rates will rise.

USD/JPY technical outlook

"Yesterday's break through 105.70 high signals a renewal of the uptrend, towards 107.90 minor resistance", said Stoyan Mihaylov, analyst at Deltastock. "Initial intraday support lies at 105.70 and crucial on the downside is 104.70".

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