The break below the 112-112.18 region for USDJPY pair has unleashed strong downside potential, paving the way to the emergence of a downside bubble on the daily chart and signaling a strong deterioration the ST technical pattern, according to Micaella Feldstein, Research Analyst at Natixis.
“Against this backdrop, rallies should be short lived and we expect the cross to extend its losses to the next supports at 110.87-111 (Fibonacci extensions) ahead of 110.05 (monthly Bollinger moving average) and to 109.44 (weekly Bollinger lower band).”
“The resistances are located at 112-112.18, at 112.77-112.91, at 113.20-113.37 and at 113.80.”
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