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Firmer Off Recent Lows

DOLLAR-YEN TECHS
  • RES 4: 107.09 100-dma
  • RES 3: 107.05 High Aug 13 and the bull trigger
  • RES 2: 106.68 High Aug 17
  • RES 1: 106.58 High Aug 25
  • PRICE: 106.38 @ 06:09 BST Aug 26
  • SUP 1: 105.44 Low Aug 21
  • SUP 2: 105.10 Low Aug 19 and the intraday bear trigger
  • SUP 3: 104.86 76.4% retracement of the Jul 31 - Aug 13 rally
  • SUP 4: 104.19 Low Jul 31 and a major support

USDJPY traded higher Tuesday as the pair pulls further away from recent lows. Recent gains reinforce the current bullish tone following the Aug 19 bounce. Activity on Aug 19 is a bullish engulfing reversal candle. The pattern suggests a base has been established at 105.10. An extension higher would open the 107.05 key resistance, Aug 13 high. Sub 105.10 levels however would again highlight a bearish threat and expose major support at 104.19.

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