USD/JPY Outlook: Corrective dips may precede final attack at 200SMA

Slobodan Drvenica Windsor Brokers

USDJPY

The pair consolidates around 111 handle following strong advance in past three days and remains bid for attack at 200SMA (111.28), violation of which would expose nearby barriers at 111.40 zone (late Dec high); 111.55 (Fibo 76.4% of 113.70/104.59) and 111.40 (100SMA). Optimistic tone over US/China trade talks (President Trump signaled possible 60-day extension from 1 Mar deadline) underpins the action Bullish techs also support, but strongly overbought stochastic (not firmer reversal signal yet) warns that bulls may face strong headwinds here. Dip- buying would be favored while corrective dips hold above 110.20 zone (broken Fibo 61.8%, reinforced by rising 10SMA).

Res: 111.12; 111.28; 111.40; 111.55
Sup: 110.86; 110.61; 110.20; 109.78

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

1. R3 111.81
2. R2 111.42
3. R1 111.21
PP 110.81
1. S1 110.6
2. S2 110.2
3. S3 110

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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