Direction continues to elude the USDJPY. The sharp drop off seen this morning has run into a heavily fortified support area between 105.70-106. In the area are a confluence of minor and major fib retracement levels, the rising 50-day SMA and the rising trend since April. The test of this level will be critical in determining long-term direction as the upside has hit its head against the long-term falling trend seen through trendlines and a 200-day SMA. If volatility picks quickly after trading begins again on Monday, we may finally see the long-awaited breakout in that same week.
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