Bounce after last week’s massive losses to offer better levels to join bearish market
The USDJPY regained traction and bounces on Monday after 5.7% fall last week, as bears lost traction at key Fibo support at 138.62 (61.8% of 130.39/151.94) and ahead of next key level at 138.14 (base of thick daily Ichimoku cloud).
Rebound was inspired by oversold daily studies and probes above psychological 140 level, with formation of bear-trap under 138.62 Fibo support, to possibly boost recovery.
On the other side, a massive weekly bearish candle weighs heavily on near-term action, which would limit recovery and offer better levels to re-enter bearish market.
Extended upticks should be capped under strong barriers at 143.45/68 (falling daily Tenkan-sen / daily cloud top) to keep fresh bears off multi-decade peak (151.94) in play.
Res: 140.80; 141.16; 142.48; 143.46
Sup: 138.62; 138.14; 137.70; 135.47