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FxWirePro: USD/JPY close below the 21-DMA undercuts uptrend

 

  • USD/JPY broke below 21 DMA in yesterday's trade, falling to as low as 122.30.  The pair ran through fresh bids near the mid-point of the 122 handle at Tokyo start.
     
  • Recovery extended to 122.85, but selling pressure weighed, bringing the pair lower. USD/JPY is now attempting a tepid bounce towards hourly 10-SMA located at 122.69. 
     
  • USD/JPY gently bid, pre-weekend. Gotobi, Japanese importer settlement demand also falls on a Saturday
     
  • Close above 21 DMA at 122.90 could see further gains. Flat daily Ichi Tenkan at 122.97 likely near-term pivot. 
     
  • Immediate resistance is now located at 122.78 (10 DMA) and further ahead at 122.90 21 DMA.
     
  • A December U.S. rate hike seems almost certain, barring any shocks in today's nonfarm payrolls report
     

 

Resistance Levels:
R1: 122.78 (10 DMA) 

R2: 122.90 (21 DMA)

R3: 122.96 (Daily Tenkan-Sen)

Support Levels: 

S1: 122.40 (23.6 % Fibo of 118.05 - 123.75 rise) 

S2: 122.30 (Nov 24 low)

S3: 122.26 (Daily Low Nov 25)

 

 

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