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Reverses Downtrend With Impressive Bounce

DOLLAR-YEN TECHS
  • RES 4: 106.88/90 50-day EMA / High Jul 24
  • RES 3: 106.40 20-day EMA
  • RES 2: 106.16 Weekly High
  • RES 1: 106.00 High Jul 31
  • PRICE: 105.98 @ 17:16 BST Jul 31
  • SUP 1: 104.19/103.67 Intraday low / 76.4% of the Mar 9 - 24 rally
  • SUP 2: 103.09 Low Mar 12
  • SUP 3: 102.02 Low Mar 10
  • SUP 4: 101.19 Low Mar 9 and major support

After a spell of downside pressure early Friday, USDJPY reversed impressively into the close to keep pressure on the weekly high. This counters the bearish threat that had dominated since the recent breach of key supports at 106.07, Jun 23 low and 105.99, May 6 and 7 low. To the downside, 103.67 marks key support, the 76.4% retracement. A break would open 103.09, the Mar 12 low.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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