XM Group - Analytics

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    Technical Analysis – USDJPY testing 123.00, neutral bias

    USDJPY is testing the key psychological 123.00 yen level which is now acting as intra-day resistance. The intraday bias is neutral as the pair consolidates around this level.

    On the daily chart, the market is well above the Ichimoku cloud and above the 200-day moving average. This is supporting a bullish bias. The tenkan-sen line is above the kijun-sen line, also a bulish signal. Prices broke out of a recent 118.05 – 120.87 range (from the end of August to early November) after rallying sharply last Friday following a strong US jobs report. After reaching a high of 123.59, prices are now correcting this rally as the market approached overbought levels – RSI near 70.

    The top of the recent range will act as support for a downside move 121.65. If this support fails, prices would return to a neutral bias back into the range.

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