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USD/JPY unable to extend gains

FXstreet.com (Córdoba) - The USD/JPY showed a timid reaction to US trade data, which showed the deficit shrank to $34.25 in November, the smallest since October 2009.

The USD/JPY moved only a tad higher toward the 104.55 area but failed to pick up momentum to rise further. At time of writing, the USD/JPY is trading at the 104.50 zone, recording a 0.3% gain on the day.

EUR/USD technical perspective

"The hourly chart shows 100 and 200 SMA's converging in the 104.70 area and offering now immediate resistance, while indicators stand in positive territory albeit lacking direction", says Valeria Bednarik, chief analyst at FXstreet.com. "In the 4 hours chart however, indicators turned south below their midlines, keeping the pair exposed to further falls in the short term".

Bednarik locates immediate supports at 104.20, 103.90 and 103.55, while she sees resistances at 104.70, 105.10 and 105.40.

US December 29 Redbook index (MoM); -0.6%; 4.1% (YoY)

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