USD/JPY Outlook: Recovery runs out of steam and pressures initial pivots at 108 zone

USDJPY

Recovery after flash crash low at 104.59 (03 Jan) showed strong signs of stall and capped by falling 10SMA (currently at 108.53), with Monday's action holding in red and helped by bearish daily techs. Fresh weakness pressures near-term base, formed at 108 zone, also double Fibo support (broken 38.2% of 113.70/104.59/23.6% of 104.59/109.08) clear break of which would generate initial reversal signal, which requires confirmation on extension and close below 107.37 (Fibo 38.2% of 104.59/109.08). Alternatively, bullish signal for extension of recovery from 104.59 low could be expected on break and close above daily Kijun-sen (109.15).

Res: 108.59; 109.08; 109.15; 110.00
Sup: 108.00; 107.76; 107.37; 107.00

USDJPY

 

Interested in USDJPY technicals? Check out the key levels

    1. R3 109.18
    2. R2 108.89
    3. R1 108.72
  1. PP 108.43
    1. S1 108.26
    2. S2 107.97
    3. S3 107.8

 

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