USDJPY – bounce from 112.50 base expected to fade under daily cloud top
|The pair bounces from 112.50 support zone (former correction low of 18 Jan) that was retested after yesterday’s fall, but offers solid support for now.
Near-term action remains biased lower and consolidation is expected to precede final break below 112.50 base, for extension of the downleg from 118.65/59 double-top that would look for 111.97 (Fibo 38.2% of 101.17/118.65 rally) initially.
Bearish setup of daily studies supports scenario, with upticks expected to hold below 114.05 /30 zone (falling daily Tenkan-sen / daily cloud top).
Any sustained break here would delay near-term bears for extended correction.
Next strong barrier lies at 114.83 (Fibo 38.2% of 118.59/112.51 downleg) and guards upper breakpoint at 115.60 (19 Jan lower top.
Res: 113.60; 114.05; 114.30; 114.83
Sup: 112.85; 112.50; 111.97; 111.00
Interested in USDJPY technicals? Check out the key levels
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