USDJPY – Limited consolidation after sharp fall; key barrier at 112.00 expected to cap upticks

Slobodan Drvenica Windsor Brokers

USDJPY

The pair bounces on Thursday after suffering heavy losses in past two days with strong bearish acceleration on Wednesday on China's US treasuries purchase story. Wednesday fall was the biggest one-day fall since Nov 22 and hit 1 1/2 month low at 111.26, exposing key short-term support at 110.83 (27 Nov low). Daily techs turned into full bearish setup after recent fall and favor further weakness after consolidation. Recovery attempts above initial barrier at 111.68 (200SMA0 were so far short-lived, with extended upticks expected to stay under former key supports at 112.00 zone, now reverted to resistance. The pair is focusing on Friday's release of US CPI and retail sales data which are expected to provide fresh signals. Meanwhile, near-term action may stay within narrow consolidation.

Res: 111.68; 111.87; 112.00; 112.37
Sup: 111.26; 111.00; 110.83; 110.15

Interested in USDJPY technicals? Check out the key levels

1. R3 113.88
2. R2 113.34
3. R1 112.35
PP 111.81
1. S1 110.82
2. S2 110.28
3. S3 109.29

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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