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    Technical Analysis – USDJPY keeps bullish bias on weakened momentum

    USDJPY headed higher for the second day to 123.55 after hitting a one-month low of 121.93 on June 30. The intra-day bias is bullish as RSI is above 50 and trending upwards.

    Prices are likely to meet resistance around 124.19, which is 23.6% of the Fibonacci retracement level of the upleg from 118.88 to 125.84. The upwards momentum has weakened after the tenkan-sen line’s recent crossing below the kijun-sen line. But the overall outlook for the medium term is still bullish as the pair is trading above the Ichimoku cloud and the moving averages.

    However, a weakened momentum may hold back USDJPY from another sustained rally and a break above the June 5 high of 125.84 is needed to prevent the pair from consolidating. On the downside, support would come around 122.35, which is 50% of the Fibonacci retracement level.

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