USDJPY – Fresh risk-off mode pushes the pair lower
|The dollar came under pressure on fresh risk-off mode that increased demand for safe haven and sent the pair to two-week low at 110.77 in early Tuesday's trading. Fresh bearish signal is generating for further easing that may extend towards key near-term support at 110.23 (18 May low, reinforced by rising 200SMA), after multiple failure to clearly break above daily cloud top at 111.80. Asian trading was capped by thick hourly cloud (cloud base lies at 111.26) with additional bearish pressure building on formation of 10/55SMA bear cross at 111.35. Firm bearish structure of technical studies on lower timeframes and daily technicals in bearish setup maintain negative outlook. Violation of 110.23 trigger and psychological 110.00 support (also daily cloud base) would generate strong bearish signal for extension of larger bear-leg from 114.36 (11 May peak). Plethora of strong barriers between 111.35 and 111.80 is expected to cap corrective upticks.
Res: 111.35; 111.46; 111.68; 111.80
Sup: 110.77; 110.67; 110.23; 110.00
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