USDJPY TECHS: Sights Are On The Bear Trigger
- RES 4: 134.77/81 High Jan 6 / 23.6% Oct - Jan downleg
- RES 3: 133.94 50-day EMA
- RES 2: 132.87 High Jan 11
- RES 1: 130.78/131.58 20-day EMA / High Jan 18
- PRICE: 130.46 @ 16:44 GMT Jan 26
- SUP 1: 127.23 Low Jan 16 and the bear trigger
- SUP 2: 126.81 1.382 proj of the Oct 31 - Nov 15 - 21 price swing
- SUP 3: 126.36 Low May 24 and a key support
- SUP 4: 125.49 1.50 proj of the Oct 31 - Nov 15 - 21 price swing
USDJPY recovered well through the Thursday session, but the bounce fell short of the Wednesday/Tuesday high. The trend outlook remains bearish for now and resistance at 131.58, the Jan 18 high, remains intact. Note too that the pair is also trading below the 20-day EMA, at 130.78. Recent activity still appears to be a bear flag formation, reinforcing the downtrend. A break lower would open 126.81, a Fibonacci projection - the bear trigger is 127.23, Jan 16 low. On the upside, clearance of 131.58 would be a bullish development.
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