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Thursday, January 3, 2013

$USDJPY

USDJPY closed lower on Thursday as it extends the decline off September's high. The low-range close sets the stage for a steady to lower opening when Friday's night session begins trading. 

Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible near-term. If March extends the decline off September's high, monthly support crossing at .11307 is the next downside target. Closes above the 20-day moving average crossing at .11870 are needed to confirm that a short-term top has been posted. 

First resistance is the 10-day moving average crossing at .11684. 
Second resistance is the 20-day moving average crossing at .11870. 

First support is Wednesday's low crossing at .11470. 
Second support is monthly support crossing at .11307.