Recovery gains pace but needs more evidence for reversal signal
The USDJPY advances for the third consecutive day and cracks initial barrier at 137.94 (Fibo 23.6% of 151.94/133.62 descend).
The dollar received fresh boost from renewed warnings from economists that the US economy is heading into recession, despite recent encouraging signals from solid US economic data which revived hopes that the largest world economy may skip recession.
Recovery emerged after a bear-trap under ascending 200DMA, with initial signals of reversal pattern forming on daily chart, though bulls would require more evidence, as overall structure is still bearish.
Break of 137.94 would generate initial bullish signal which would require lift above pivotal barriers at 140.00/60 (psychological / Fibo 38.2% of 151.94/133.62) to sideline short-term bears.
Broken 5DMA (136.17) marks initial support which should keep the downside protected and maintain bear-term bullish bias.
Caution on drop below 200DMA (134.83) loss of which would signal bearish continuation.
Res: 137.94; 138.81; 140.00; 140.62
Sup: 136.78; 136.17; 134.83; 133.62