Slobodan Drvenica
Windsor Brokers
Bears took full control on Thursday and the pair extended weakness into second straight day, hitting session low at 105.26, two ticks above key support at 105.24 (02 Mar low).
Firm bearish setup of daily techs is reinforced by dollar’s negative sentiment after Fed and rising demand for safe haven yen on strong trade war concerns.
All eyes are on announcement of US tariffs on China, which could spark stronger fall of USDJPY pair on risk aversion.
Firm break of key 105.24/00 supports would expose 104.04 (Fibo 76.4% of 99.53/118.60 ascend) and could expose psychological 100 support on stronger bearish acceleration, depending on decision of the US regarding import tariffs.
Falling Tenkan-sen line marks solid resistance at 106.27, while descending 30SMA remains pivotal barrier (currently at 106.65) and only firm break here would neutralize bearish threats.
Res: 105.57; 105.96; 106.27; 106.65
Sup: 105.24; 105.00; 104.46; 104.04
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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