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