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USD/JPY Extends Pullback but Retains Some Buoyant Feel

JPY
MNI (London)
  • USD/JPY continued its slow corrective pullback, away from Wednesday's high of Y106.22, the rate easing to Y105.60 Thursday, touching a low of Y105.55 in earlier Asian trade.
  • Support seen into Y105.50 (Y105.52/50 38.2% Y104.41-106.22/200-dma) , a break to expose Y105.40 ahead of Y105.10/00 and Y104.80.
  • Resistance now seen at Y106.00/10, a break to allow for a retest on Y106.22 ahead of Y106.50.
  • UST yields, US fiscal stimulus headlines and Fed speak remain key drivers.
  • MNI Techs: USDJPY maintains a bullish tone and the recent pullback is considered a correction. The Feb 16 climb resulted in a break of resistance at 105.77, Feb 5 high. This confirms a resumption of the uptrend that started Jan 6 and reinforces the significance of the recent key technical break - the breach on Jan 27 of the bear channel resistance drawn off the Mar 2020 high. The focus is on 106.26 next, a Fibonacci projection. Support is seen at 105.18.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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