USD/JPY Outlook: Bulls risk stall at pivotal Fibo / Kijun-sen barrier

Slobodan Drvenica Windsor Brokers

USDJPY

The pair remains in green for the third straight day and extends recovery after last week’s flash crash, but face headwinds at strong 109.15/20 barriers (50% of 113.70/104.59 / daily Kijun-sen).
Risk of recovery stall exists as daily MA’s are in bearish setup and 20/200SMA death-cross is forming, while indicators hold in negative territory.
Bearish scenario requires confirmation on return and close below daily Tenkan-sen (108.00) that would signal lower top and open way for further weakness.
Conversely, sustained break above daily Kijun-sen (109.20) and falling 10SMA (109.50) would generate bullish signal for extension of recovery leg from 104.59 spike low towards psychological 110.00 barrier (reinforced by converged 20/200SMA’s).

Res: 109.20; 109.50; 110.00; 110.22
Sup: 108.51; 108.00; 107.51; 107.00

Interested in USDJPY technicals? Check out the key levels

1. R3 109.7
2. R2 109.22
3. R1 108.97
PP 108.49
1. S1 108.24
2. S2 107.76
3. S3 107.51

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.