USD/JPY outlook: Bulls regained traction but lack momentum for stronger recovery

Slobodan Drvenica Windsor Brokers

USD/JPY

The USDJPY remains constructive in early Monday after last week’s fall stalled on approach to daily cloud base and Friday’s bullish close, but recovery is still fragile and needs more evidence to confirm reversal.

Last week’s large bearish candle (the pair was down 0.7% for the week) weighs on recovery, along with bearishly aligned daily studies that keeps key 110 resistance zone (psychological, daily cloud top, converging 10/55/20 DMA’s) out of reach for now.

Daily cloud base (109.29) and July 19 spike low (109.06) offer solid supports, loss of which would risk deeper correction of 2021 uptrend (102.59/111.65).

Res: 109.82; 110.12; 110.36; 110.59.
Sup: 109.60; 109.29; 109.06; 108.56.

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

1. R3 110.36
2. R2 110.09
3. R1 109.89
PP 109.63
1. S1 109.43
2. S2 109.16
3. S3 108.96

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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