Slobodan Drvenica
Windsor Brokers
The pair fell back to 109.50 zone (approx. the mid-point of this week's range) on fresh safe-haven buying as markets fear an escalation of US/China trade tensions after China signaled a lack of interest in resuming trade talks with the US under current circumstances.
Recovery attempts from week's low at 109.02 (supported by formation of bear-trap pattern on daily chart) ran out of steam at 110.00 zone, where repeated upside rejections occurred.
The barrier is reinforced by falling daily Tenkan-sen and guards more significant 110.31 resistance (daily cloud base/Fibo 38.2% of 112.40/109.02).
Near-term risk is expected to shift lower while the price remains below 110, with fresh weakness threatening of renewed attempt below cracked 109.41 pivot (Fibo 38.2% of 104.57/112.40).
Weekly close below here is needed to generate bearish signal for extension of bear-leg from 112.40 (2019 high, posted on 24 Apr).
Bearish momentum is gaining pace, with bearish setup of daily Tenkan-sen/Kijun-sen, supporting scenario.
Only sustained break above 110.31 would neutralize downside risk and shift near-term focus higher.
Res: 109.87; 110.00; 110.31; 110.48
Sup: 109.55; 109.33; 109.02; 108.49
Interested in USDJPY 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.
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