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Focus Is On 107.05 Despite Incurring Resistance

DOLLAR-YEN TECHS
  • RES 4: 107.74 Trendline resistance drawn off the Mar 24 high
  • RES 3: 107.53 High Jul 20
  • RES 2: 107.05 High Aug 13 and the bull trigger
  • RES 1: 106.95 Intraday high
  • PRICE: 106.16 @ 06:10 BST Aug 28
  • SUP 1: 105.61 Low Aug 27
  • 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 overnight but has for now found resistance. Yesterday's bounce off session lows reinforces bullish and signals scope for an extension higher. The Aug 19 price pattern was a bullish engulfing suggesting a base has been established at 105.10. The pattern is still valid. An extension higher would open the 107.05 key resistance, Aug 13 high. Sub 105.10 levels are required to reverse the current outlook and expose 104.19.

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