Larger bulls likely to resume after extended consolidation
The USDJPY extends range trading into third consecutive week, as Doji candles in past two weeks signal strong indecision.
Repeated weekly upside rejection points to strong headwinds that bulls face, but the downside was so far well protected by Fibo support at 134.49 (23.6% of 126.36/137.00) where a higher base is forming.
The dollar remains well supported against the basket of its major counterparts, by risk aversion on strong migration into safety, due to darkening global economic outlook, suggesting that larger bulls are likely to resume after extended consolidation.
The near-term price action needs to hold above 134.49 to keep bias with bulls for fresh push towards new 24-year high at 137.00, violation of which would signal resumption of steep uptrend from 102.59 (Jan 2021 trough) towards targets at 139.92 / 140.00 (Sep 1998 high / psychological).
Only sustained break of 134.49 base would put bulls on hold and risk deeper correction.
Res: 135.87; 136.36; 136.70; 137.00
Sup: 134.74; 134.49; 133.43; 132.93