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Tuesday, January 15, 2013

$USDJPY

USDJPY was sharply higher due to short covering overnight as it consolidates some of the decline off September's high. 

Stochastics and the RSI are oversold, diverging but are neutral to bearish signaling that additional weakness is possible near-term. If March extends the decline off September's high, monthly support crossing at .11050 is the next downside target. Closes above the 20-day moving average crossing at .11568 are needed to confirm that a short-term low has been posted. 

First resistance is the 10-day moving average crossing at .11364. 
Second resistance is the 20-day moving average crossing at .11568. 

First support is Monday's low crossing at .11160. 
Second support is monthly support crossing at .11050.