USD/JPY challenge noted at 80.60

USD/JPY challenge noted at 80.60

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USD/JPY challenge noted at 80.60 - V.Bednarik

FITITOL--> FXstreet.com (San Francisco) - USD/JPY rallied sharply from its 7-day low and key support near 79.12 on Friday, having climbed to as high as 79.97 before closing the NY session at 79.92 vs. 79.44 late Friday.

This price action resulted in the formation of a bullish outside bar pattern, completely engulfing the previous three days of consolidative price action.

"The big challenge from the pair, comes at 80.60, past May and June monthly high," comments Valeria Bednarik, Chief Analyst at FXstreet.com. "A daily close above that area should open doors for further gains although another failure in the 80.30/80.60 price zone, should see price falling back near 79.00."

Tankan manufacturing data at 23:50 GMT will be risk event for JPY this Monday. USD/JPY last trades at 79.90, with support levels at 79.80, 79.45 and 79.20, while resistance levels lie at 80.10, 80.30 and 80.60.