USD/JPY Technical Analysis: Bullish correction might be short-lived

USD/JPY lost about 250 pips since last Thursday to current Monday’s lows. USD/JPY is currently supported by a daily trendline from March, 26.
However, today’s sharp drop suggests that the bearish correction might not be over yet and a failure to build momentum above 111.39 and 111.60-111.80 area can lead to a retest of the current daily low at 110.75.
On the other hand, a breakout above 111.60-111.80 area can lead to an acceleration to 112.19-112.40 area.

Flavio Tosti Independent Analyst

USD/JPY 15-minute chart

Spot rate: 111.33
Relative change: -0.13%
High: 111.51
Low: 110.75

Trend: Bullish / Risk of bearish reversal

Resistance 1: 111.39 May 21 swing high
Resistance 2: 111.60-111.80 area, 23.6% and 38.2% Fibonacci retracement low/high July 11
Resistance 3: 112.19-112.40 area, July 11 high and intraday swing low
Resistance 4: 112.64 July 12 high
Resistance 5: 113.18, 2018 high
Resistance 6: 113.26-113.38, 200-weekly simple moving average and January 8 high
Resistance 7: 114.45 October 27, 2017 high

Support 1: 110.75 current 23 July low
Support 2: 111.02-111.16 previous intraday swing lows
Support 3: 110.90 June 15 swing high

Author

Flavio Tosti

Independent Analyst

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