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USDJPY Tests Key Support

The underside of the broken trend line for USD/JPY (NYSEARCA:FXY) and the 200 day MA is being tested at the 78.62-72 area. The 50 % of the move up from June 1 low (see hourly chart below) also comes in at the 78.716 level. The low today came in at the 78.606. Key support is being tested.

When risk is well defined and strong, I look for profit taking support bids with stops below.

The move to the downside today started when the price fell below the 200 hour MA at the 79.25 level (green line in the hourly chart below). Prior to that, the price had remained between the 100 and 200 hour MA for around a day and half before the break.

A break of the 78.62 level should see further selling with he 78.465 the next target support. On the topside, look for the 79.00 to provide initial target resistance.

http://www.forexlive.com/blog/2012/06/15/usdjpy-tests-key-support/