USDJPY – strong signals for extended recovery but plenty of barriers en-route
USDJPY
Strong recovery rally on Wednesday left long bullish daily candle and formed bullish outside day, generating positive signal and sidelining immediate downside risk.
Brief extension higher today, cracked important barrier at 111.41 (Fibo 38.2% of 113.38/110.19 downleg) but without firm break so far.
Plethora of barriers weighs and threats of recovery stall. Falling 10 SMA lies above cracked Fibo barrier at 111.10 and marks next obstacle at 111.60, guarding upper pivots at 111.70/72 (200SMA / weekly cloud top).
Sustained break here would trigger stronger retracement of 113.38/110.19 downleg.
Res: 111.41; 111.60; 111.70; 111.87
Sup: 111.10; 110.60; 110.15; 110.00
Interested in USDJPY technicals? Check out the key levels
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.
