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Saturday, February 9, 2013

$USDJPY

USDJPY closed higher due to short covering on Friday. The mid-range close sets the stage for a steady opening when Monday'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 .10532 is the next downside target. Closes above the 20-day moving average crossing at.11017 are needed to confirm that a short-term top has been posted. 

First resistance is the 10-day moving average crossing at .10784. 
Second resistance is the 20-day moving average crossing at .11017. 

First support is Wednesday'sNlow crossing at .10633. 
Second support is monthly support crossing at .10532.