Bears are gaining traction, clear break of 109 zone to risk deeper fall
The USDJPY is consolidating in early Thursday under new one-month low (109.11), hit after strong drop in past two days.
Near-term structure weakened after the latest bearish acceleration and remains weighed by multiple failures above pivotal barriers at 110.00/19 (psychological / daily cloud top) that points to bull-trap formation.
Daily MA’s turned to full bearish setup and formed a number of bear-crosses, while negative momentum remains strong and both contributing to negative near-term outlook.
Violation of pivotal supports at 109 zone (109.11/108.72) would further weaken the structure (as break here would signal and end of month-long congestion, presented by four consecutive weekly Dojis) and risk extension towards key supports at 108.19/107.47 (Fibo 38.2% of 102.59/111.65 / Apr 24 trough).
Only rebound through 109.80 / 110.00 (converged 10/20DMA’s / psychological) would sideline bears.
Res: 109.60; 109.80; 110.00; 110.26
Sup: 109.11; 108.72; 108.50; 108.19