USD/JPY outlook: Bears hold grip and crack pivotal support zone

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY remains firmly in red and cracked pivotal Fibo level at 140.48 (61.8% retracement of 127.22/161.95), the upper boundary of 140.48/00 key support zone, after renewed weakness in past two days fully offset positive signal from Wednesday’s long-tailed daily candlestick.

The pair is on track for another weekly loss, with long upper shadow on weekly candlestick, pointing to strong offers and adding to downside prospects.

Technical picture on daily chart is firmly bearish (strong negative momentum / price weighed by descending daily Ichimoku cloud / MA’s in bearish setup with formation of 55/200DMA death-cross, reinforcing negative outlook).

Firm break of 140.48/40 pivots will be increasingly bearish and risk extension towards 137.23 trough (July 2023 low).

Falling 10DMA (143.22) should cap extended upticks and keep larger bears intact.

Res: 141.68; 142.08; 143.04; 143.22.
Sup: 140.25; 140.00; 138.60; 137.23.

Interested in USD/JPY technicals? Check out the key levels

1. R3 143.99
2. R2 143.52
3. R1 142.67
PP 142.2
1. S1 141.35
2. S2 140.88
3. S3 140.03

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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