USDJPY – weekly cloud top continues to cap recovery; outlook remains negative

Slobodan Drvenica Windsor Brokers

USDJPY

Initial basing signal came after repeated downside rejections at 110.00 support that left two consecutive long-tailed daily candled, but the pair so far failed to capitalize on this.

Recovery attempts were so far limited, with key near-term barrier at 111.36 (weekly cloud top / Fibo 23.6% of 115.49/110.09 fall) remaining intact.

This maintains downside risk for renewed attack at strong 110.00 zone (psychological support / 50% retracement of 101.17/118.65 rally), break of which would signal bearish continuation of the downleg from 115.49 (10 Mar high).

Firm bearish setup of daily studies favors scenario of selling on correction, with 111.36 marking strong barrier ahead of falling daily Tenkan-sen (111.78) expected to cap any stronger uptick.

Repeated close below weekly cloud top is needed to confirm strong bearish stance.

Res: 111.36; 111.56; 111.78; 112.15
Sup: 110.92; 110.60; 110.00; 109.50

Interested in USDJPY technicals? Check out the key levels

1. R3 112.55
2. R2 111.88
3. R1 111.51
PP 110.84
1. S1 110.47
2. S2 109.80
3. S3 109.43

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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