USD/JPY outlook: The USD/JPY on track for deeper fall after break of key supports

Slobodan Drvenica Windsor Brokers

USD/JPY

The USDJPY remains under increased pressure and extending weakness into third straight day, after recovery failed to sustain break above 100DMA (141.13) and fresh bears emerged below ascending thick daily cloud, after recent actions were repeatedly contained by cloud base.

Bears probe again through cracked Fibo pivot at 138.62 (61.8% of 130.39/151.94 upleg), with eventual close below here and violation of Nov 15 spike low (137.67) to generate fresh bearish signal and open way for deeper drop.

The dollar remains at the back foot on growing concerns that the Fed would slow the pace of its rate hikes, with minutes of the central bank’s last meeting, released yesterday, add to the notion.

A month-long downtrend from new multi-decade high (151.94) remains in play, as Japan’s recent interventions to support falling yen, added pressure on dollar, with bearish daily and weakening weekly technical studies, contributing to negative outlook.

Broken psychological 140 support, reinforced by 10DMA should ideally cap and keep bears intact.

Only lift above 100DMA and penetration of daily cloud would sideline bears.

Res: 139.63; 140.00; 141.16; 142.25.
Sup: 137.67; 136.17; 135.47; 133.83.

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

1. R3 143.46
2. R2 142.54
3. R1 141.01
PP 140.09
1. S1 138.57
2. S2 137.64
3. S3 136.12

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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