Recovery is losing traction but bias remains with bulls above 10DMA
The USDJPY is holding in sideways mode for the third consecutive day and looking for fresh direction signal.
Recovery from 127.22 (2023 low of Jan 6) peaked at 135.11 on Friday (two-month high), but subsequent easing left a daily candle with long upper shadow, signaling that bulls might be running out of steam.
Daily studies remain in bullish setup, but stochastic is about to emerge from overbought territory and warning extended consolidation or correction.
Pivotal supports at 133.05/132.72 (broken Fibo 23.6% of 151.94/127.22 / 10DMA) are in focus and should contain dips to keep bulls in play for fresh push higher.
Conversely, clear break of these supports would weaken near-term structure and risk deeper pullback towards key supports at 132.08/131.84 (Fibo 38.2% of 127.22/135.11 recovery leg / daily cloud) loss of which would signal reversal.
Res: 135.11; 136.66; 136.94; 137.54
Sup: 133.60; 133.05; 132.72; 132.08