USD/JPY Outlook: Double bear-cross maintains pressure for renewed test of 108.29 Fibo support
|USD/JPY
The pair eases on Friday after double-Doji with the upside being capped by converged 10/20/30DMA’s.
Fresh weakness comes despite positive signal on Thursday’s strong downside rejection (long-tailed Doji) as near-term action is weighed down by double-bear-cross (10/20 and 10/30DMA’s, formed yesterday and today).
Weakening daily momentum is about to break into negative territory and adding to bearish near-term outlook.
Also, the pair is on track for the second straight bearish weekly close.
Fresh bears eye Fibo support at 108.29 (23.6% of 104.44/109.48) which contained the action in past one week, violation of which would risk extension towards strong supports at 107.88/82 (1 Nov trough / top of rising thick daily cloud).
Tops of past few days’ congestion are reinforced by 20DMA (108.75) and mark initial barrier which needs to cap and maintain bearish bias.
Only lift and close above 200DMA (108.95) would sideline bears and shift near-term focus higher.
Res: 108.75; 108.95; 109.28; 109.48
Sup: 108.29; 108.23; 107.88; 107.83
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