- USD/JPY slumped to fresh three-week lows on Wednesday following the release of FOMC minutes
- Dovish Fed minutes, with no clear sign of an imminent Sept hike and downbeat July US inflation figures dragged the buck lower
- Bid tone in USD/JPY intact in mid-Asian session, the pair is attempting a mild recovery to regain 124 handle
- Overall bias bearish, cresting Tenkan and the thin Cloud well below reinforce bearish view
- USD/JPY is currently trading at 123.90, with immediate resistance located at 124.50 (Aug 19 High) levels and above which it could extend gains 124.64 (Aug 13 High) levels
- To the downside immediate support might be located at 123.82 (Today’s Low) below that at 123.65 (50-DMA) levels
Resistance LevelsR1: 124.14 (Kijun Line)R2: 124.19 (21-DMA)R3: 124.54 (Tenkan)Support Levels:S1: 123.68 (Session Low Aug 19)S2: 123.61 (50-DMA)S3: 123.52 (Daily Low Jul 31)
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