After Japanese GDP data, JPY is trading higher against USD. The pair posted a big loss which completely erased Friday's gains at yesterday's session. Yesterday, we forecasted bearish views on USDX & USD related pairs. We said bulls had to close above 125.60 on Monday's session, but they failed. The parallel resistance is seen at 126.00. At today Asian session, the pair is trading at 124.44 compared to Monday's closing price of 124.48. We recommended selling below 125.00 with targets at 124.80 and 124.60. Selling will be tightened below 124.60 towards 124.25 and 124.00. We expect the pair to touch 123.75 prior to the US retail sales data report. It is likely to trade around 123.00 later. The pair formed a support base on 123.76. If bulls faile to hold this level, selling pressure will be tighten. The real problem for bulls will arise in case the price corrects below 123.70.0. Small buying opportunity for bulls is seen above 124.85 with targets at 125.00, 125.30, and 125.50. We recommend fresh buying only if the pair closes above 125.60 on a daily basis. Strong upswing is expected above 126.00 towards 129.00 and 133.00 or even 136.00.
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