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Falters After Initial Break Higher

USDJPY TECHS
  • RES 4: 116.09 1.764 proj of Apr 23 - Jul 2 - Aug 4 price swing
  • RES 3: 115.52 High Nov 24 and the bull trigger
  • RES 2: 114.81 76.4% of the Nov 24 - 30 downleg
  • RES 1: 114.38 61.8% of the Nov 24 - 30 downleg
  • PRICE: 113.63 @ 16:16 GMT Dec 16
  • SUP 1: 113.23 Low Dec 10 / 13
  • SUP 2: 112.53 Low Nov 30 and the bear trigger
  • SUP 3: 112.08 High Sep 30 and a recent breakout level
  • SUP 4: 111.32 61.8% retracement of the Aug - Nov rally

USDJPY broke out of its recent tight range and short-term conditions have improved for bulls - however the price action faltered and prices returned lower into the Thursday close.The bullish engulfing candle on Dec 6 is still in play and highlights a reversal from the recent low of 112.53 on Nov 30. The 20-day EMA as a resistance has been cleared reinforcing the positive tone and this also reinforces the candle pattern. Continued gains would open the November high of 115.52. Sub 112.53 levels would reverse the trend.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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