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USDJPY Further Downside Correction Bias (But Underlying Bull Theme Intact)

Technical Analysis

 

The further plunge through 123.73 and 122.76 supports leaves a negative tone still for Wednesday, but whilst above 121.53 still seen as corrective within the bigger picture breakout.

We still see a more positive underlying tone intact after the May breakout from the multi -month range and the push above the 2002 peak at 125.81 to push USDJPY to its highest level for over 13 years!

For Today:

  • We see a downside bias for 122.36; break here aims for 121.53, which we would look to try to hold.
  • But above 123.35 opens risk up to 123.73/76 and maybe closer to 124.62.

Short/ Intermediate-term Outlook – Upside Risks:

  • We see a positive tone with the bullish threat to 125.81/85.
  • Above here targets 129.08 and 130.00.

What Changes This? Below 121.53 signals a neutral tone, only shifting negative below 120.64.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


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