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Resistance Remains Intact

DOLLAR-YEN TECHS
  • RES 4: 106.55 High Sep 3
  • RES 3: 106.38 High Sep 8
  • RES 2: 105.86 50-day EMA
  • RES 1: 105.80 High Sep 30
  • PRICE: 105.55 @ 10:39 BST Oct 6
  • SUP 1: 104.94 Low Oct 2
  • SUP 2: 104.41 Low Sep 22
  • SUP 3: 104.00 Low Sep 21 and the bear trigger
  • SUP 4: 103.80 1.618 proj of the Aug 13 - 19 rally from Aug 28 high

USDJPY started the week firmer, extending the recovery off Friday's 104.94 low but is softer this morning. Recent gains neutralise Friday's bearish signal and the pair is trading back within its recent range. Key near-term resistance is located at 105.80/86, Sep 30 high and 50-day EMA. A break would be a bullish development and open 106.55, Sep 3 high. Key short-term support lies at 104.94. Clearance of this level is required to excite bears.

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