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FX analysis

Short-term technical analysis update on USD/JPY ahead of BOJ

Japanese yen


(click to enlarge chart)

Time stamped: 17 June 2022 at 10.30am SGT

Source: CMC Markets

In our prior “Short-term FX Technical Strategy” report dated on 15 June 2022, USD/JPY has staged the expected decline below 135.70 and almost hit the upper limit of 131.25/130.95 support zone (printed an intraday low of 131.49 on 16 Jun).

The technical structure remains skew towards further potential JPY strength in the short-term. Watch the tightened key short-term pivotal resistance at 133.70 for another potential leg of down move towards 131.25/130.95 and a break below 130.95 may open up scope for further drop towards 129.90/70.

On the other hand, a clearance with an hourly close above 133.70 invalidates the bearish tone for a squeeze up towards the 135.70 resistance in the first step.

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