USDJPY outlook: Bulls show strong indecision at key Fibo barrier
|USDJPY
Bulls attempt to regain traction after Monday’s recovery stalled at key Fibo barrier at 110.31 (38.2% of 112.40/109.02) and daily action ended in long-legged Doji, signaling strong indecision.
The dollar moved higher in early Tuesday’s trading on comments from Fed Chief Powell, who argued against cutting interest rates and relief on Huawei case, but still lacking strength for final push through 110.31 pivot.
Overbought daily stochastic adds to concerns about repeated failure at 110.31 that would add to the downside risk, but initial signal of reversal would require fall and close below 10 SMA (109.83).
Conversely, close above 110.31 would generate initial signal of bullish continuation.
Res: 110.31; 110.49; 110.58; 110.71
Sup: 110.01; 109.93; 109.83; 109.49
Interested in USDJPY technicals? Check out the key levels
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