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    USD/JPY cracks 106, at fresh 5-week lows Dhwani Mehta

    The selling pressure behind the USD/JPY intensified as Europe got underway, knocking-off the rate to the lowest levels since May 3.  USD/JPY gives up 1 big figureThe bid tone around the Japanese yen keeps going bigger as we progress towards the European session, sending USD/JPY lower below 106 handle as risk-off sentiment heightened after the Nikkei accelerated to the downside. At the time of writing, USD/JPY drops -1.07% to 105.85, while the Nikkei slumps -3.21% to just ahead of 16k mark.The European traders hit their desk and absorb the latest news about the weekend’s bombings in Orlando by the terrorist group ISIS, while markets also remains wary ahead of the upcoming central banks’ decision, including the key Fed and BOJ.Calendar-wise, Monday remains quite dull, with nothing relevant on the cards from the US docket ahead. Therefore, attention now shifts towards the US retail sales data due tomorrow.USD/JPY Technical levels to watchIn terms of technicals , the immediate resistance is located at 106 (round number). A break above the last, the major could test 106.68 (5-DMA). While to the downside, the immediate support is seen at 105.52/50 (May 3 low/ psychological levels) and below that at 105 (Multi-year low).

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