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Current Bear Cycle Remains Intact

USDJPY TECHS
  • The current downtrend in USDJPY remains intact and the softer Dollar and now softer equities are maintaining the heavy tone for the pair as we approach the APAC crossover.
    • Following Monday’s breach of 131.31, 61.8% retracement of the Jan 16 - Mar 8 rally, price is once again testing below here having printed a fresh daily low in recent trade of 131.01.
    • The breach strengthens bearish conditions and sets the scene for a move towards 129.75, the 76.4% retracement. Below here, the focus will turn to 128.09 and 127.23, the Jan 16 low and a key support.
    • Firm resistance is seen at the 20-day EMA. The average intersects at 133.94 where a break is required to ease bearish pressure.

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