USD/JPY outlook: Recovery faces strong headwinds from key barrier
|USDJPY
Recovery from new 3 ½ month low at 109.02 (13 May) faced strong headwinds from key barriers at 110.31 (daily cloud base / Fibo 38.2% of 112.40/109.02 descend) and showing initial signs of stall.
Daily RSI turned sideways and stochastic is hitting the overbought zone border line, signaling that corrective phase might be over.
Failure to clear 110.31 pivot would add to negative signal, with extension and close below broken falling 10SMA (109.83) needed to signal reversal.
Return below cracked key Fibo support at 109.41 (Fibo 38.2% of 104.57/112.40) would bring bears fully back to play for extension of downtrend from 112.40.
Conversely, lift and close above 110.31 would generate fresh signal for extension of recovery from 109.02.
Res: 110.31; 110.48; 110.66; 110.95
Sup: 109.91; 109.83; 109.49; 109.15
Interested in USDJPY technicals? Check out the key levels
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