USD/JPY Still in Pullback Mode

In March the sharp spike down in USD/JPY and rapid reversal gave a bull signal, and subsequent weakness is still viewed as corrective ahead of another upward push.

• WEEKLY CHART Note how the Mar sharp sell-off saw a test of the projected bear channel base before recovery set in. First resistance here, from the late 2009 84.81 low, was earlier tested -a push through this would be a bull sign.
• DAILY CHART The pullback has been trying to hold around the 80.00 support area. Pressure is still bearing on this so we are keeping in mind the lower 76.4% pullback at 78.58 for the time being. At this stage a rebound back above the 82.23 19-May high would be a useful sign for the bulls. In due course we look for a return to the 50% recovery area.

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