Slobodan Drvenica
Windsor Brokers
USD/JPY
Bears resume on Tuesday after a double rejection at pivotal Fibo support at 113.07 (38.2% of 109.11/115.51).
The latest comments from drugmaker Moderna’s CEO that Covid-19 vaccines were unlikely to be as effective against the new Omicron variant as they have been against the Delta version, raised concerns in the market and further boosted the risk aversion.
Fresh extension of the pullback from 115.51 (2021 high, posted on Nov 24) penetrated thick daily cloud (top of the cloud lays at 112.93), and pressure pivot at 112.72 (Nov 9 trough) generating initial bearish signal.
The near-term action is weighed by last Friday’s massive bearish candle, while bearish momentum is gaining pace on daily chart and MA’s forming bear-crosses, adding to negative outlook.
Today’s close below 112.72 would confirm strong bearish signal and open way for test of next key supports at 112.31 (50% retracement) and 111.90 (daily cloud base), violation of which would confirm reversal and open way for a deeper correction.
Res: 112.93; 113.07; 113.89; 114.00.
Sup: 112.31; 112.07; 111.90; 111.56.
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.