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Monday, January 7, 2013

$USDJPY

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

Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are 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 .11792 are needed to confirm that a short-term low has been posted. 

First resistance is the 10-day moving average crossing at .11588. 
Second resistance is the 20-day moving average crossing at .11792. 

First support is last Friday's low crossing at .11317. 
Second support is monthly support crossing at .11307.