USDJPY falls sharply on fresh risk aversion

Slobodan Drvenica Windsor Brokers

USDJPY

The pair was sharply down on Friday, driven increased risk aversion after President Trump’s comments on North Korea.
Fresh bears extended below 111.00 handle and touched Fibo 61.8% of 110.23/112.12 support, signaling that recovery phase off 110.23 (18 May low) may be over.
Repeated failures to break and close above daily cloud top (111.80) resulted in fresh weakness, as recovery rally stalled here, despite brief upticks above 112.00 barrier.
Daily studies are turning into bearish setup on latest weakness and signal increased risk of further easing which may result in full retracement of 110.23/112.12 corrective upleg and test of psychological 110.00 support, reinforced by 200SMA.
Corrective upticks on oversold near-term studies should be capped by broken daily Kijun-sen at 110.62 which guards daily cloud top barrier.

Res: 111.30; 111.62; 111.80; 112.12
Sup: 110.90; 110.50; 110.23; 110.00

Interested in USDJPY technicals? Check out the key levels

1. R3 112.55
2. R2 112.26
3. R1 112.05
PP 111.76
1. S1 111.55
2. S2 111.26
3. S3 111.05

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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