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Bounces Ahead of Y130

USDJPY TECHS
  • RES 4: 137.46 High Jul 27
  • RES 3: 136.10 Former channel support drawn from the Mar 4 low
  • RES 2: 134.12 50-day EMA
  • RES 1: 132.15 High Aug 2
  • PRICE: 131.99 @ 16:43 BST Aug 2
  • SUP 1: 130.00 Round number support
  • SUP 2: 129.51 Low Jun 2
  • SUP 3: 128.64 Low Jun 1
  • SUP 4: 127.53 Low May 31

USDJPY recovered losses into the Tuesday close, erasing the overnight pullback that saw the pair print pullback lows of 130.41. The initial move lower resulted in a break of support at 131.50, the Jun 16 low and strengthens current bearish conditions. This theme was confirmed last week, following the break of support at 135.50, the base of a bull channel drawn from the Mar 4 low. Attention turns to the 130.00 handle and 129.51, Jun 2 low. On the upside, initial firm resistance is seen at 134.12, the 50-day EMA.

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