USDJPY outlook: Bulls eye key barriers at 113.20 zone; dip buying remains favored

Slobodan Drvenica Windsor Brokers

USDJPY

The pair hit new two-month high at 112.87 on Friday, in extension of broader uptrend, after fresh bullish signal was generated on Thursday’s close above 112.37 (Fibo 76.4% of 113.17/109.77 fall).
Bullish techs suggest further gains for eventual attack at key 113.20 zone (19 July high / Fibo 138.2% of current wave C of five-wave cycle from 109.77).
Bulls may consolidate before continuing, as overbought daily slow stochastic suggests. Corrective dips face support at 112.37 (broken Fibo 76.4% barrier), with deeper pullback expected to find ground at 112.00 zone (Thursday’s low / rising daily Tenkan-sen) to keep bulls in play.
Conversely, break here would delay bulls for deeper correction.

Res: 112.87; 113.00; 113.20; 113.69
Sup: 112.37; 112.04; 111.96; 111.66

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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