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USD/JPY - A Whipping, But Downtrend Remains Intact

Published 05/16/2014, 12:46 AM
Updated 07/09/2023, 06:31 AM
USD/JPY
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INTRADAY CHART (USD/JPY)

USD/JPY Hourly Chart

BIAS: While 101.65-75 caps we should see losses to 100.97-12

Resistance: 101.65-75 101.95-01 102.19 102.36
Support: 101.31 100.97-12 100.77 100.61

MAIN ANALYSIS: Ouch, I hadn't considered that solution... The whip back higher took me by surprise but in the end it still implies the same downside target at 100.97-12 (also note 100.86). The early part of the day should see the 101.65-75 area cap for the losses to 100.97-12 but watch for reversal indications here as I suspect a deeper recovery back to the 101.90-05 area. This should cap the downtrend to resume to 100.61 for another correction.

COUNTER ANALYSIS: Only a break back above 102.20-25 would suggest a move back to the 103.01 high.

MEDIUM TERM ANALYSIS:
9th May: The bearish structure is not very clean and has an area between 100.86-101.11 which has several projection targets and which levels are seen will determine whether we'll see a final low closer to 100.23 or as deep as 99.52. Consequently, the next few days will be important in being able to determine the final corrective target.

Only a move back above 102.00-05 would mean a potential re-test 103.01 at least or potentially even higher.

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