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USDJPY to Remain Vulnerable Below 109.70
On Monday I wrote how Monday’s gap down on USDJPY could leave the pair vulnerable. But it was more about the 111.00 handle than the act of gapping lower. You can see how 111.00 has served as a pivot for USDJPY since mid-February. In fact, the level has played a critical role here since 2017. Monday’s session not only closed below 111.00, but it also failed to close the gap left by Friday’s 111.10 close. All in all, things looked pretty bleak for USDJPY. Fast forward to today, and the risk-sensitive pair is already off its weekly high by 140 pips. It’s also testing the next key support level at 109.70. I ... (full story)