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Recovery Extends

USDJPY TECHS
  • RES 4: 139.59 50.0% retracement of the Oct - Jan bear cycle
  • RES 3: 138.17 High Dec 15
  • RES 2: 137.77/91 High May 2 / High Mar 8 and key resistance
  • RES 1: 137.45 High May 17
  • PRICE: 136.76 @ 15:51 BST May 17
  • SUP 1: 134.96/62 20- and 50-day EMA values
  • SUP 2: 133.50 Low May 4
  • SUP 3: 133.02 Low Apr 26 and a key near-term support
  • SUP 4: 132.75 61.8% retracement of the Mar 24 - May 2 bull leg

USDJPY continues to appreciate. Resistance at 136.63, the May 3 high, has been cleared and this signals scope for a continuation towards 137.77, the May 2 high and 137.91, the Mar 8 high. A break of this resistance zone would strengthen bullish conditions. On the downside, initial firm support is seen at 134.96, the 20-day EMA. Key support is far off at 133.50, the May 4 low. A break of this level would reinstate a bearish theme.

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