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Bearish Engulfing Candle A Concern For Bulls

USDJPY TECHS
  • RES 4: 116.87 High Jan 1, 2017
  • RES 3: 116.09 1.764 proj of Apr 23 - Jul 2 - Aug 4 price swing
  • RES 2: 115.51 High Mar 10, 2017
  • RES 1: 114.99 1.50 proj of Apr 23 - Jul 2 - Aug 4 price swing
  • PRICE: 114.30 @ 16:24 GMT Nov 18
  • SUP 1: 113.76 Low Nov 12 / 15
  • SUP 2: 112.75/73 50-day EMA / Low Nov 9
  • SUP 3: 112.08 High Sep 30 and a recent breakout level
  • SUP 4: 111.51 Low Oct 8

USDJPY remains in an uptrend and this week's break of 114.70, Oct 20 high confirms a resumption of this trend. The pair however faced resistance during Wednesday's session. Note that Wednesday's price pattern is a bearish engulfing candle and highlights a short-term concern for bulls. A deeper pullback would expose key support at 112.73, Nov 9 low. A break of 114.97, Wednesday's high would remove bearish concerns and resume the uptrend.

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