USD/JPY outlook: USD/JPY extends steep descend into third straight day and breaks key support

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY remains in a steep fall for the third consecutive day (down almost 4%) with speculations that intervention may be behind the move, along with increased safe-haven demand and month-end flows.

Fresh extension lower on Tuesday broke through significant supports at 153.62 (the base of thick ascending daily Ichimoku cloud / 100 DMA) and cracked Fibo 50% retracement of 146.58/159.45 upleg (153.01).

Daily technical studies show strong negative momentum and MAs above the price and turning south that supports current action.

Broken cloud base/100 DMA reverted to significant resistance which should ideally cap and keep fresh bears in play for firm break of 153.01 that would expose targets at 151.50 (Fibo 61.8%) and 150.20/00 (bull-trendline / psychological) in extension.

Res: 153.62; 154.00; 154.53; 155.61.
Sup: 152.15; 151.50; 150.20; 150.00.

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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