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USDJPY Analysis: Supported By 200-Hour SMA

Despite several attempts to edge lower on Wednesday, the movement of the US Dollar was guided by the 200-hour SMA. As apparent on the chart, the pair has still not reached the upper boundary of a two-month channel down. This is expected to occur today.

A possible test of this line is also supported by the fact that the nearest southern barrier is provided by the 200– and 55-hour SMAs and the monthly S1 which are restricting the pair’s movement below the 107.20 mark. This might put upward pressure on the rate just to allow for a test of the senior channel.

Technical indicators are in favour of subsequent bearish pressure that should dominate the market today. Thus, the test of 108.00 could be followed by a decline in price. This, in turn, might mark the beginning of a new wave down during next week.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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