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Bounces Nicely Ahead of Close

DOLLAR-YEN TECHS
  • RES 4: 106.55 High Sep 3
  • RES 3: 105.69 20-day EMA
  • RES 2: 105.10 Low Aug 19 and former breakout level
  • RES 1: 104.87 High Sep 21
  • PRICE: 104.70 @ 17:02 BST Sep 21
  • SUP 1: 104.00 Low Sep 21
  • SUP 2: 103.80 1.618 proj of the Aug 13 - 19 rally from Aug 28 high
  • SUP 3: 103.51 1.764 proj of the Aug 13 - 19 rally from Aug 28 high
  • SUP 4: 103.09 Low Mar 12

Despite USDJPY clearing major support at 104.19, Jul 31 low, the pair staged an impressive intraday rally into the close. This shows decent support at the day's lows of 104.00, which become a focus for any further downtick in prices. A fall through the handle would pave the way for weakness towards 103.80 next and 103.51, both Fibonacci projections. Note too that the Mar 12 low of 103.09 has also appeared on the radar. On the upside, initial resistance is seen 104.86, Monday's intraday high ahead of the more important 105.10 level, Aug 19 low and a former key breakout level.

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