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Trend Direction Remains Down

USDJPY TECHS
  • RES 4: 137.48 High Dec 20
  • RES 3: 136.47 200-dma
  • RES 2: 134.77/81 High Jan 6 / 23.6% Oct - Jan Downleg
  • RES 1: 133.73 20-day EMA
  • PRICE: 131.94 @ 15:58 GMT Jan 9
  • SUP 1: 131.31 Low Jan 9
  • SUP 2: 129.52 Low Jan 3 and the bear trigger
  • SUP 3: 128.44 1.236 proj of the Oct 31 - Nov 15 - 21 price swing
  • SUP 4: 127.53 Low May 31

USDJPY failed to hold on to Friday’s high of 134.77, resulting in a close at the session low. This reinforces a bearish theme and suggests that recent gains have been part of a short-term corrective cycle. Moving average studies are in a bear-mode position, highlighting a broader bearish backdrop. The key support and trigger for a resumption of the downtrend is 129.52, Jan 3 low. Initial key short-term resistance has been defined at 134.77.

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

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