USD/JPY outlook: Recovery is seen as positioning for fresh weakness
|USD/JPY
The pair bounces above 107 on Monday after last week's fall was strongly rejected at 106.63 on Friday and failed to close below cracked Fibo support at 106.87 (61.8% of 106.07/108.16). The action is supported by rising bullish momentum and stochastic emerged from oversold territory, but requires more signals on break of initial barriers at 107.20 zone (20DMA / Fibo 38.2% of 108.16/106.63). Larger picture is bearish and sees current move as positioning for fresh weakness, with stronger upticks to be ideally capped at 107.50/60 zone (Fibo 38.2% of 109.85/106.07 / 30 DMA / Fibo 61.8% of 108.16/106.63). Only break above 108 zone would neutralize bears.
Res: 107.20; 107.40; 107.60; 107.80
Sup: 107.00; 106.78; 106.63; 106.38
Interested in USD/JPY technicals? Check out the key levels
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