USDJPY - Strong 100.00 support zone holds for now, outlook remains negative
USDJPY
The pair showed strong hesitation at 100.00 support zone which was retested today, after Monday’s strong fall that left long red daily candle. Immediate downside risk was sidelined by bounce to 100.97, however, rally stalled on approach to near-term pivots at 101.06 and 101.23.
Overall strong bearish structure is signaled by firm negative alignment of daily Ichimoku studies, as well as bearish setup of daily MA’s and indicators which maintains downside pressure.
Extended consolidation above 100.00 support (where near-term base is forming and is reinforced by bull-trendline off 24 June post-Brexit low) might be likely near-term scenario before fresh attempts through 100.00, towards next targets at 99.52 and 98.98.
Alternative scenario requires firm break above 101.23 (23 Sep lower top) for stronger correction towards 101.41 (falling Tenkan-sen) and 101.73 (Fibo 61.8% of 102.77/100.06 downleg) in extension.
Res: 100.97; 101.23; 101.73; 102.11
Sup: 100.23; 100.00; 99.52; 98.98
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.
