USDJPY Outlook: Yen continues to rise on strong safe-haven demand
|USDJPY
The pair accelerated lower on Monday, extending last week’s fall, which marked the biggest weekly loss since the second week of February.
Fresh weakness emerges after consolidation of last Thu/Fri, shaped in double long-legged Doji.
Rising safe-haven demand, fueled by geopolitical tensions, boosted yen which hit one-month high against dollar on Monday.
Today’s fall eventually broke through cracked pivot at 111.97 (Fibo 61.8% of 110.38/114.54 rally) and heading towards daily cloud top at 111.47.
Daily cloud is spanned between 111.47 and 110.93 and together with 110.76 (Fibo 38.2% of larger 104.63/114.54 uptrend) marks pivotal supports, break of which would generate stronger bearish signal.
Bearish momentum continues to strengthen on daily chart and supports further weakness, but bears may take a breather on approach to cloud top as slow stochastic turned sideways in oversold zone.
Extended upticks should be capped by broken 30SMA (112.45) to keep bears in play.
Res: 111.97; 112.23; 112.45; 112.95
Sup: 111.62; 111.47; 111.29; 110.93
Interested in USDJPY technicals? Check out the key levels
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