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Trading Above Recent Lows

USDJPY TECHS
  • RES 4: 105.85 High Oct 12
  • RES 3: 105.75 High Oct 20
  • RES 2: 105.37 50-day EMA
  • RES 1: 105.34 Intraday high
  • PRICE: 104.92 @ 06:17 GMT Nov 4
  • SUP 1: 104.37 Intraday low
  • SUP 2: 104.00 Low Sep 21 and the bear trigger
  • SUP 3: 103.67 76.4% retracement of the Mar 9 - 24 rally
  • SUP 4: 103.09 Low Mar 12

USDJPY gains are still considered corrective. The outlook is bearish with attention on the key 104.00 handle, Sep 21 low. Clearance of this support would suggest scope for a deeper USD sell-off within the bear channel drawn off the Mar 24 high. Price has however recovered off recent lows. A break above the overnight high of 105.34 would undermine the bearish theme and expose 105.75 instead, Oct 20 high.

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