Slobodan Drvenica
Windsor Brokers
USDJPY
The pair remains firmly in red on Thursday and broke below key support at 106.51 (Fibo 61.8% of 98.99/118.66, Jun/Dec 2016 rally), extending losses to new 15-month low at 106.17, posted in early hours of European session. Clear break below 106.51 will be strong bearish signal and will confirm an end of broader longs, shifting longer-term bias to the downside. Fresh risk appetite pushed the dollar lower and boosted stocks which works in favor of bearish scenario, activated on break below main bull-trendline from Oct 2012 low at 77.12 and probe below 106.51 pivot. Close below 106.51 would open way for stronger bearish acceleration as no technical obstacles are seen on weekly chart until 103.63 (Fibo 76.4% of 98.99/118.66 rally). However, bears may be obstructed by oversold conditions on daily chart, which could result in consolidation before bears resume. Former lows and key supports at 107.31 (08 Sep) and 108.28 (108.11 (17 Apr 2017) mark solid barriers which should limit upticks.
Res: 106.51; 107.00; 107.31; 107.90
Sup: 106.17; 105.57; 105.00; 104.50
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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