Bouncing Well Away From Key Support

• RES 4: 106.11 High Oct 7
• RES 3: 105.68 High Nov 11 and the bull trigger
• RES 2: 105.16 High Nov 13
• RES 1: 104.64 High Nov 23
• PRICE: 104.50 @ 16:41 GMT Nov 23
• SUP 1: 103.65 Low Nov 18
• SUP 2: 103.18/09 Low Nov 6 / Low Mar 12 and key support
• SUP 3: 102.02 Low Mar 10
• SUP 4: 101.19 Low Mar 9 and major support

Having traded at the lower end of the recent range early Monday, USDJPY rallied sharply into the London close, topping the 20-day EMA in the process. This confirms the underlying bullish view based on the Nov 9 price action. In candle terms, the price pattern on that day was a bullish engulfing line signalling a potential reversal. A break of 105.68, Nov 11 high would reinforce this set-up and t expose the early October highs of 106.11. Key support is at 103.18, Nov 6 low. A breach negates the candle pattern and resume the downtrend.