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Volatile Uptrend

USDJPY TECHS
  • RES 4: 153.64 1.618 proj of the Aug 2 - 8 - 11 price swing
  • RES 3: 153.39 3.764 proj of the May 24 - Jul 14 - Aug 2 price swing
  • RES 2: 152.30 High Jul 1990
  • RES 1: 152.00 Round number resistance151.20
  • PRICE: 149.67 @ 16:07 BST Oct 21
  • SUP 1: 150.00/149.56 Former psychological resistance / Low Oct 20
  • SUP 2: 148.19/147.06 Low Oct 18 / 14
  • SUP 3: 146.52 20-day EMA
  • SUP 4: 144.72/143.53 Low Oct 7 / 5

Friday price action showed that USDJPY’s erratic uptrend can be matched by acute intraday volatility, with prices touching new cycle highs of 151.95 before correcting back below the Y149.00 handle. The positive sequence of higher highs persists, but Friday shows the uptrend will remain unpredictable. Note that the trend is in overbought territory but this is clearly not a concern for bulls at this stage. Firm trend support lies at 146.52, the 20-day EMA.

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

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