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Off Sharply

DOLLAR-YEN TECHS
  • RES 4: 106.41 Channel resistance drawn off Mar 24 high
  • RES 3: 106.11/38 High Oct 7 and the bull trigger / High Sep 8
  • RES 2: 105.73/75 50-dma / High Oct 20
  • RES 1: 105.04 Low Oct 4 and a recent breakout level
  • PRICE: 104.94 @ 17:21 BST Oct 21
  • SUP 1: 104.34 Low Oct 21/1.0% 10-dma envelope
  • SUP 2: 104.28 4.0% Lower Bollinger Band
  • SUP 3: 104.00 Low Sep 21 and the bear trigger
  • SUP 4: 10309 Low Mar 12

USDJPY sold off sharply Wednesday. The pair took out support at last week's low to break convincingly below the Y105 handle as well as the 104.94, Oct 2 low. This signals a deeper sell-off and opens the key 104.00 handle further out, Sep 21 low. On the upside, firm short-term resistance has been defined at 105.75.

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