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FxWirePro: USD/JPY hits fresh 4-month lows amid risk-off, bias lower, good to sell rallies

  • USD/JPY price action dips into weekly cloud, bias remains lower.
     
  • Bears remain in control amid risk-aversion, as treasury yields and equities are sold-off into unwinding of the Trump trade, after Friday’s Healthcare bill failed to clear the House vote.
     
  • Upside capped at 38.2% Fib at 111.07, next immediate support lies at 110.11 (weekly 200-SMA) and then 109.80 (Nov 18 low).
     
  • Price action is currently holding minor support at 110.26 (Nov 22 low). Break below will see further weakness.
     
  • Technical studies are bearish, RSI weak at 30 levels and biased lower. MACD supports downside.

Support levels - 110.26 (Nov 22 low), 110.11 (weekly 200-SMA), 109.80 (Nov 18 low)

Resistance levels - 111.07 (5-DMA & 38.2% Fib), 111.36 (Nov 21 high), 112

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral                Neutral       
4H          Bearish               Neutral       
1D          Bearish               At oversold        
1W         Bearish               Neutral      

Recommendation: Good to go short on rallies around 110.60/80, SL: 111.10, TP: 110.25/ 110/ 109.80
 

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