Directionless action between 109.57 and 110
Friday’s action was so far shaped in Doji candle and in directionless, following Thursday’s close in red after failure to sustain break above important 110 barrier.
Coronavirus fears prompted investors into safe-havens that boosted yen and kept larger USDJPY bulls on hold under 110 pivot.
Mixed daily studies (strong bullish momentum and MA’s in positive setup vs south-heading stochastic and RSI) lack clearer direction signal.
This week’s action holds above weekly cloud top (109.57) that keeps bullish bias, after Thursday’s strong downside rejection (109.61, just above weekly cloud top / rising 10DMA).
On the other side, safe-haven demand weighs on the pair but was so far insufficient to produce more pressure and break initial supports that would lead to deeper pullback towards 109.49/43 (converged 20/30DMA’s / Fibo 38.2% of 108.31/110.13 ascend).
Expect neutral tone while the price holds between 109.57 and 110 levels, with firm break of either side expected to generate initial direction signal.
Res: 109.91; 110.13; 110.29; 110.52
Sup: 109.72; 109.57; 109.43; 109.22