USDJPY - Double upside rejection signals hesitation ahead of strong resistance zone
|Recovery rally from 100.00 base shows strong hesitation, after rally was rejected at 101.83 yesterday and at 101.76 on today’s renewed attempt higher. Quick pullbacks followed upside rejections on both times, signaling strong resistance zone ahead, formed by daily cloud base/bear-trendline/daily Kijun-sen) which is expected to cap extended rallies.
The pair currently rides on the fourth (corrective wave from 100.00) of five-wave fall from 104.30 peak and the wave is expected to ideally end at 102.00/20 zone, before resuming lower.
Cracked daily Tenkan-sen line is still offering good resistance at 101.41 and guarding more significant barriers at 102.00/20.
On the downside, rising trendline off June’s low, currently lies at 100.10 and reinforces 100.00 zone base, break of which will open next targets at 99.52 and 98.98.
Res: 101.23; 101.41; 101.83; 102.20
Sup: 100.73; 100.43; 100.10; 100.00
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