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A rebound and stall Thursday at our 119.98 level (right at 119.97) , but we still see this as corrective after the significant erosion earlier this week through 118.86 chart support for a more bearish shift.
We look for a roll back lower into Friday and for a more negative theme into mid-January.
Short-term Outlook - Downside Risks:
- We see a more negative tone with the bearish threat initially back to the recent low at 118.06, then to 117.58 and 116.82 retrace and chart targets.
- Below here aims for 115.56/50/45.
What Changes This? Above 119.97/98 eases bear risks; through 120.75 signals a neutral tone, only shifting positive above 121.00.
- We see a downside bias for 118.85/70; break here aims for 118.06.
- But above 119.97/98 opens risk up to 120.43, maybe 120.75/83, which we would look to cap.
4 Hour USDJPY