USD/JPY Outlook: Fresh safe-haven demand sent yen to five-week high vs dollar
|USDJPY
The Japanese yen was among top gainers in Asian session on Monday, as comments of President Trump over the weekend raised concerns about escalation of US/China trade conflict and prompted investors into safe-haven assets.
Thinner market due to Japan's holiday, also contributed to the action The USDJPY pair opened with big gap lower on Monday and fell through daily cloud, to find footstep at cloud base (110.30).
Extension of Friday's fall (the pair was down around 0.4%) threatens testing psychological 110.00 support and possible extension towards key near-term supports at 109.71/58 (25 Mar trough/weekly cloud base), if fresh bears clearly break below daily cloud.
Meanwhile, consolidation above new five-week low holds within daily cloud (110.30/81) as rising bearish momentum and daily MA's in full bearish setup formed multiple bear-crosses, maintain negative outlook.
Consolidation should ideally remain within daily cloud, but extended upticks need to stay below 111.05 (Friday's low/broken 50% of 109.71/112.40) to keep bears in play.
Conversely, filling today's gap would sideline downside risk and open way for further recovery towards a cluster of daily MA's at 111.30/60 zone.
Res: 110.81; 111.05; 111.30; 111.50
Sup: 110.63; 110.30; 110.00; 109.71
Interested in USDJPY technicals? Check out the key levels
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