USD/JPY outlook: Recovery probes above 110 pivot, underpinned by bear-trap
|USD/JPY
Bulls regained control as bounce from Monday’s seven-week spike low extends into second straight day and probe above pivotal 110 barrier (psychological/Fibo 38.2% of 111.65/109.09 fall).
Strong downside rejection on Monday formed a bear-trap under 100DMA that supports recovery, underpinned by rising daily cloud.
Close above 110 pivot is needed to generate bullish signal and open way for further advance.
Mixed daily studies so far lack clearer direction signal, rising bearish momentum suggests that recovery is still fragile, with failure to clearly break 110 resistance zone to keep the downside vulnerable.
Res: 110.17; 110.36; 110.66; 111.04.
Sup: 110.00; 109.79; 109.48; 109.06.
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