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Trendline Support Under Pressure

USDJPY TECHS
  • RES 4: 110.97 High Mar 31 and the bull trigger
  • RES 3: 110.55 High Apr 6
  • RES 2: 109.96 High Apr 9
  • RES 1: 108.75 20-day EMA
  • PRICE: 108.13 @ 16:42 BST Apr 26
  • SUP 1: 107.48 Low Apr 23
  • SUP 2: 106.97 Low Mar 4
  • SUP 3: 106.78 50.0% retracement of the Jan - Mar rally
  • SUP 4: 106.37 Low Mar 1

USDJPY weakness extended once again Friday and the pair traded below pivot support at 107.77, the trendline drawn off the Jan 6 low. The breach strengthens the current bearish case and although the move lower is considered a correction, further downside appears likely. Price has also traded below 38.2% retracement of the Jan - Mar rally, this opens 106.78, the 50.0% level. Resistance is at 108.75, the 20-day EMA.

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