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USD/JPY: Cautiously bearish below 110.10

FXStreet (Barcelona) - USD/JPY is trading at 108.90, down -0.78% on the day, having posted a daily high at 109.86 and low at 108.79.

USD/JPY has taken the bulls for a ride and now tests the psychological support of the 109 handle with the USDJPY bull run now looking well and truly stretched. Analysts at TD Securities explained a little more downside movement overall this week would bolster the outlook for a corrective push lower in the USD. “Given that the USD has already rebounded strongly from the 23.6% initial retracement support zone, there is a possibility that the “dip” has already been seen. But while the USD is capped below 110.10, corrective risks remain. The weekly chart shows a possible top forming last week (“hanging man” signal) which a lower close this week will help “confirm”. We are cautiously bearish while USDJPY is below 110.10”.

USD/JPY note worthy levels

With spot trading at 108.90, we can see next resistance ahead at 109.19 (Hourly 200 SMA), 109.23 (Hourly 100 SMA), 109.27 (Hourly 20 EMA), 109.29 (Weekly Classic PP) and 109.34 (Daily Classic PP). Support below can be found at 108.79 (Daily Low), 108.76 (Daily Classic S1), 108.48 (Weekly Classic S1), 108.42 (Weekly Low) and 108.35 (Yesterday's Low).

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