USDJPY – Initial signals of recovery losing traction; n/t price action is holding between daily cloud top and Kijun-sen
|Extension of strong bounce from correction low at 112.55 showed initial signs of stall, after daily Kijun-sen capped recovery at 115.60 (50% of 118.59/112.55 pullback) and daily candle with long upper shadow was left on Thursday. However, bullishly aligned near-term technicals favor further upside, as thickening daily Ichimoku cloud (cloud top is currently at 114.10) is continuing to underpin. Consolidation between daily cloud top and Kijun-sen line is expected to precede fresh attempts higher, with break above 115.57 pivot, to trigger fresh recovery towards 116.28 (Fibo 61.8%) and 116.85 (11 Jan lower top) in extension. Conversely, strong bearish signals could be expected on penetration into daily cloud that would trigger fresh weakness towards 113.71 (Fibo 61.8% of 112.55/115.60 recovery leg) and re-expose 112.55 handle on firm break lower.
Res: 115.11; 115.60; 116.28; 116.85
Sup: 114.40; 114.10; 113.71; 113.17
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