Bulls started to lose traction on strongly overbought studies / weaker dollar
The USDJPY eases from new over six-month high on Monday, as strongly overbought conditions on daily chart prompted traders to start collecting profits.
The dollar started to lose traction after rallying for three consecutive weeks and closed above psychological 140 barrier for the first time since Nov 17, pressured by growing prospects of debt ceiling deal which dented safe haven demand and boosted appetite for riskier assets.
Initial reversal signals still need to be verified, with minimum requirement seen on return and close below former strong barriers at 140.00/139.58 (psychological / broken 50% retracement of 151.94/127.22) with extension below rising 10DMA (138.80) to further weaken near-term structure and risk deeper pullback towards 138.08 (Fibo 38.2% of 133.50/140.91) and 137.20 (200DMA / 50% retracement).
Res: 140.91; 141.97; 142.50; 143.00
Sup: 140.00; 139.58; 139.16; 138.08