USD/JPY outlook: Bears increase pace and penetrate rising daily cloud

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY remains under increased pressure on Monday and extends steep bear-leg from 151.43 lower top into third straight day.

Last week’s close below psychological 150 level generated initial bearish signal which was boosted by today’s extension through 148.44 (Fibo 23.6% of 137.23/151.90 rally) and drop into rising daily cloud (cloud top lays at 148.37).

Daily close below these levels to add to signals of a double top and reversal, which may spark deeper pullback towards next strong supports at 146.30 and 145.84 (Fibo 38.2%/daily cloud base).

Weakening daily studies (south-heading 14-d momentum is travelling deeply into negative territory/converged daily Tenkan/Kijun-sen are about to form a bear-cross) support bears, though the action may slow due to oversold conditions.

Limited upticks should be ideally capped by broken 55DMA (149.28) to keep bears in play and offer better selling opportunities.

Only sustained break above 150 level would sideline immediate downside threats.

Res: 148.80; 149.28; 150.00; 150.38.
Sup: 147.29; 146.51; 146.30; 145.84.

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

1. R3 152.16
2. R2 151.47
3. R1 150.58
PP 149.89
1. S1 149
2. S2 148.31
3. S3 147.42

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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