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Key Support Exposed

USDJPY TECHS
  • RES 4: 105.68 High Nov 11 and the bull trigger
  • RES 3: 105.20 76.4% retracement of the Nov 11 - 18 sell-off
  • RES 2: 104.76 High Nov 4 and key S/T resistance
  • RES 1: 104.28 High Dec 11
  • PRICE: 103.56 @ 20:13 GMT Dec 16
  • SUP 1: 103.26 Low Dec 16
  • SUP 2: 103.18/09 Low Nov 6 / Low Mar 12 and key support
  • SUP 3: 102.75 1.00 proj of Oct 7 - Nov 6 downleg from Nov 11 high
  • SUP 4: 102.02 Low Mar 10

USDJPY traded lower Tuesday but bounced slightly off the Wednesday lows. The pair has breached Monday's low of 103.51 signalling scope for a deeper pullback. Attention turns to the key support of 103.18, Nov 6 low. A break of this level would negate a bullish engulfing reversal candle on Nov 9 and instead confirm a resumption of the broader downtrend. On the upside, firm short-term resistance resides at 104.76, Nov 4 high.

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

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