Fresh demand for yen increases pressure on USDJPY pair
The pair fell to the lower side to a week-long congestion, pressured by fresh demand for safe-haven yen and fall of EURJPY (cross dropped to new three-year low on Thursday) on weaker euro after disappointing European PMI data.
Near-term structure weakened after Wednesday’s failure to close above cracked 10DMA (which caps the action in last seven days) kept daily MA’s in full bearish setup, with rising negative momentum on daily chart adding weakness.
Friday’s daily cloud twist also attracts, but fresh weakness needs to crack key supports at 106.92 (1 / 15 Apr double bottom) to signal exit from multi-day range.
Res: 107.60; 107.93; 108.30; 108.48
Sup: 107.28; 106.92; 106.70; 106.44