USDJPY has broken back below its 200-day moving average at 120.75. This accelerated a sharp fall yesterday. Meanwhile the fall below the daily Ichimoku cloud on August 24 shifted the bias back to bearish. RSI remains in bearish territory below 50 suggesting that upside momentum is quite weak.
In the immediate term there appears to be some consolidation around the key psychological level of 120.00 as there is some indecision in the market as to which direction to go. Immediate support comes in at 118.24. USDJPY would have to clear the resistance levels at the 200-day moving average and the high of 121.65 to move back above the cloud and shift the bias back to bullish.
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