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Bear Threat Still Present

USDJPY TECHS
  • RES 4: 139.59 50.0% retracement of the Oct - Jan bear cycle
  • RES 3: 138.17 High Dec 15
  • RES 2: 136.63/137.91 High May 3 / High Mar 8 and key resistance
  • RES 1: 135.64 50.0% retracement of the May 2 - 4 bear leg
  • PRICE: 134.98 @ 15:54 BST May 9
  • SUP 1: 133.50 Low May 5
  • SUP 2: 133.02 Low Apr 26 and a key near-term support
  • SUP 3: 132.75 61.8% retracement of the Mar 24 - May 2 bull leg
  • SUP 4: 132.02 Low Apr 13

USDJPY appears vulnerable near-term following last week’s bearish price action and despite the latest shallow recovery. Price has breached the 20-day EMA and pierced support at the 50-day EMA which intersects at 133.95. A clear breach of this EMA would undermine the recent bullish theme and signal scope for a deeper pullback. Key resistance is unchanged at 137.91, the Mar 8 high. Initial firm resistance is at 136.63, last Wednesday’s high.

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