- USD/JPY consolidates the heaviest daily fall in a month.
- Downside break of five-week-old trend line keeps sellers hopeful.
- Rising support line from late April becomes the key for a trend change.
USD/JPY licks its wounds around 109.75, up 0.07% as Tokyo opens for Friday.
The yen pair dropped the most since August 13 the previous day while breaking one-month-old support, now resistance. The declines refreshed weekly low before the latest rebound from 109.62.
However, the upbeat Momentum line and 100-SMA, not to forget the trend line breakdown, keeps USD/JPY sellers hopeful in aiming the ascending support line from April 23, near 109.15.
However, 50% Fibonacci retracement of April-July upside, around 109.55, acts as a filter to the south-run.
Meanwhile, recovery moves beyond the 100-DMA level of 109.80 need to regain above the previous support line, at 109.90.
Even so, USD/JPY bulls remain skeptical unless crossing the weekly top of 110.45, which in turn will help buyers to challenge the last month’s peak of 110.80.
USD/JPY: Daily chart
Trend: Further weakness expected
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