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Remains Vulnerable

DOLLAR-YEN TECHS
  • RES 4: 107.53 High Jul 20
  • RES 3: 107.32 Trendline resistance drawn off the Mar 24 high
  • RES 2: 106.95/107.05 High Aug 28 and Aug 13 and the bull trigger
  • RES 1: 106.55 High Sep 3
  • PRICE: 105.73 @ 10:40 BST Sep 15
  • SUP 1: 105.55 Low Sep 14
  • SUP 2: 105.20/10 Low Aug 28 / and the 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 low yesterday. A bearish theme dominates following a sharp reversal on Aug 28. The candle pattern confirmed on this day is a bearish engulfing reversal that remains valid. The pattern highlights a bearish risk and signals scope for a test of 105.10, Aug 19 low. A break would open 104.19, Jul 31 low. On the upside, initial firm resistance is at 106.55, Sep 3 high. Key resistance though is at 106.95/107.05.

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