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Channel Breakout

USDJPY TECHS
  • RES 4: 138.88 High Jul 21
  • RES 3: 137.96 High Jul 22
  • RES 2: 136.46/137.46 20-day EMA / High Jul 27
  • RES 1: 135.70 Former channel support drawn from the Mar 4 low
  • PRICE: 133.41 @ 05:44 BST Jul 29
  • SUP 1: 132.17 Low Jun 17
  • SUP 2: 131.50 Low Jun 16 and a key support
  • SUP 3: 130.00 Round number support
  • SUP 4: 129.51 Low Jun 2

USDJPY traded sharply lower Thursday and bearish activity has resumed today. The pair cleared an important support at 135.50 Thursday, the base of a bull channel drawn from the Mar 4 low. The break strengthens current bearish conditions and has resulted in a move below 134.26, the Jun 23 low. This signals scope for an extension towards 131.50, the Jun 16 low. Key short-term resistance has been defined at 137.46, the Jul 27 high.

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