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USD/JPY struggles to hold above 120 level, good to buy at dips

  • USD/JPY has  made a high of 120.38 yesterday and retreated till 118.43 today in Asian session.It is currently trading at 119.14. Overall trend is bullish as long as support 118 holds.

  • The pair  has made a dead cat bounce yesterday after PBOC cuts interest rates by 50 bpbs and with additional cuts for individual sectors.But It  is still struggling to hold above 120 level. 

  • Any further weakness can be seen  only below 118 level. Any break below 118 will drag the pair further down till 117/116 in short term.

  • The pair is facing short term resistance around and any indicative break above would extend gains till  121/121.60.

It is good to buy at dips around 118.50 with SL around 117.90 for the TP of 120/120.40

 

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