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Key Support Still Exposed

DOLLAR-YEN TECHS
  • RES 4: 105.75 High Oct 20
  • RES 3: 105.53 High Oct 21 / 50-dma
  • RES 2: 105.06 High Oct 26 and key near-term resistance
  • RES 1: 104.56 Intraday high
  • PRICE: 104.40 @ 05:59 GMT Oct 29
  • SUP 1: 104.00 Low Sep 21 and the bear trigger
  • SUP 2: 103.67 76.4% retracement of the Mar 9 - 24 rally
  • SUP 3: 103.09 Low Mar 12
  • SUP 4: 102.02 Low Mar 10

USDJPY maintains a softer tone and edged lower again yesterday. The outlook is bearish following the Oct 21 sell-off that marked a resumption of the downleg from 106.11, Oct 7 high. A number of important supports have been cleared and attention is on the key 104.00 handle, Sep 21 low. Clearance of 104.00 would suggest scope for a deeper USD sell-off within the bear channel drawn off the Mar 24 high. Firm resistance is at 105.06.

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