USDJPY remains biased lower; extended consolidation to precede fresh bears

Slobodan Drvenica Windsor Brokers

USDJPY

The pair is trading in extended consolidation around 200SMA (currently at 108.85) after recent bear-leg from 111.56 (10 Apr high) found footstep just above 108.00 round-figure support. Near-term action is directionless and entrenched within 108.30/109.20 range, as studies on lower timeframes are neutral. Larger picture, however, shows bearish, with current consolidation seen as a pause of larger downtrend which eyes initial target at 107.84 (Fibo 61.8% of larger 101.17/118.65 rally) and may extend further down on break of the latter. Limited upside is seen for now, with falling 10SMA (currently at 109.33) reinforcing initial 109.20 barrier and extended upticks expected to hold below daily Tenkan-sen (currently at 109.84) and former lows at 110.10.

Res: 109.20; 109.33; 109.84; 110.10
Sup: 108.70; 108.30; 108.11; 107.84

Interested in USDJPY technicals? Check out the key levels

1. R3 110.06
2. R2 109.63
3. R1 109.25
PP 108.81
1. S1 108.43
2. S2 108.00
3. S3 107.62

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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