USD/JPY Outlook: Reversal signal after double-Doji and hammer requires confirmation on close above 107.52 Fibo barrier
|USDJPY
The pair bounces higher in Asia / early Europe on Wednesday, after double-Doji (Fri/Mon) and hammer candle (Tue) signaled that bears are running out of steam and market direction may change.
Reversal of daily RSI and stochastic from oversold territory supports the notion, along with dollar’s firmer tone after comments from Fed officials, who said that 0.5% rate cut might be overdone.
Pivotal Fibo barrier at 107.52 (38.2% of 108.72/106.78) is under pressure and break here would provide bullish signal for recovery extension towards 107.75 (50% retracement) and 107.85 (falling 10SMA).
Failure to clear 107.52 barrier would signal extended consolidation, with existing risk of fresh downside attempts as overall picture remains bearish.
Res: 107.52; 107.75; 107.85; 107.98
Sup: 107.23; 107.10; 106.78; 106.43
Interested in USDJPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.