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Bear Cycle Remains In Play

USDJPY TECHS
  • RES 4: 144.20 High Jul 7
  • RES 3: 1143.01 High Jul 10
  • RES 2: 142.06 20-day EMA
  • RES 1: 140.27 50-day EMA
  • PRICE: 138.60 @ 06:40 BST Jul 13
  • SUP 1: 138.08 Intraday low
  • SUP 2: 137.36 50.0% retracement of the Mar 24 - Jun 30 bull leg
  • SUP 3: 137.22 4.0% 10-dma envelope
  • SUP 4: 136.31 Low May 17

USDJPY cemented a bearish tone Wednesday, trading lower and extending the bear cycle that started Jun 30. The recent sell-off has resulted in a break of both the 20- and 50-day EMAs and price is again inside the bull channel drawn from the Jan 16 low. The move signals scope for an extension towards 137.36, a Fibonacci retracement and 137.22, the 4.0% 10-dma envelope. Initial firm resistance is at 140.27, the 50-day EMA.

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