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Candle Pattern Highlights Reversal

USDJPY TECHS
  • RES 4: 106.55 High Sep 3
  • RES 3: 106.11 High Oct 8
  • RES 2: 105.86 100 dma
  • RES 1: 105.68 High Nov 11 and the intraday bull trigger
  • PRICE: 105.18 @ 06:29 GMT Nov 12
  • SUP 1: 104.43 50.0% retracement of the Nov 6 - 11 rally
  • SUP 2: 103.18/09 Low Nov 6 / Low Mar 12 and key support
  • SUP 3: 102.02 Low Mar 10
  • SUP 4: 101.29 Bear channel base drawn off the Mar 24 high

Monday's strong USDJPY rally has paused for breath. The outlook though remains bullish. In candle terms, Monday's price pattern is a bullish engulfing line highlighting a potential reversal in sentiment. A break of 105.65, the Nov 9 high (briefly probed yesterday), would reinforce the bullish set-up and signal scope for a climb towards the 100-dma at 105.86 and the early October highs of 106.11. Initial support is seen at 104.43, 50.0% of the Nov 6 - 11 rally.

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