FX September 24, 2021 / 12:49 pm UTC

Chart USD/JPY Update: Critical resistance at 110.80

By Mike Macdonald


R4111.66**2 Jul YTD high
R3111.00*break level
23 Sep low
R2110.80**11 Aug (m) high
23 Jul (w) high

S4109.20**76.4% ret of Aug rally

Asterisk denotes strength of level

13:25 BST - The bounce from 109.12/20 continues to extend, with the break above 110.00 now pressuring 110.50. Daily stochastics and the Tension Indicator continue to strengthen, highlighting scope for a test of the 110.80 monthly high of 11 August. But overbought intraday studies are expected to limit any initial tests in fresh consolidation. A close above here, however, will turn sentiment outright positive and confirm continuation of August gains, initially to congestion around 111.00. Meanwhile, support is raised to 110.00 and should underpin any immediate setbacks.

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