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USD/JPY short-term technicals favouring the downside – FXStreet

FXStreet (Barcelona) - With USD/JPY retreating below 120.00 levels, Valeria Bednarik, Chief Analyst at FXStreet, notes that only below 119.65 will confirm renewed selling interest.

Key Quotes

“The USD/JPY surged up to 120.35, before retreating back below the 120.00 figure, turning lower early in the American session as local share markets aim to open in the red.”

“The risk appetite seen during Asian hours hardly affected the Nikkei or the Yen, in the last day of the fiscal year, usually a time for taking profits out of the table and repatriate currency.”

“Anyway, the short term technical picture favors the downside, as in the 1 hour chart, the price is pressuring its 200 SMA whilst the technical indicators head lower below their mid-lines”

“In the 4 hours chart however, indicators hold in positive territory, with the Momentum now turning slightly higher.”

“A downward acceleration below 119.65 is required to confirm renewed selling interest, eyeing then a quick test of the 119.20 price zone."

“Support levels: 119.65 119.20 118.80”

“Resistance levels: 120.00 120.45 120.80”

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