USDJPY – bearish n/t bias after strong upside rejection under 30SMA on Tue; 10SMA marks key support
The pair holds in narrow consolidation above key n/t support at 106.27 (10SMA) which contained attacks in past few sessions, but n/t bias remains at the downside following strong upside rejection on Tuesday.
Repeated attempts higher stalled under falling 30SMA (currently at 107.32) which marks significant barrier.
Subsequent strong fall formed daily Doji with long upper shadow which weighs on n/t action.
Negative momentum studies and bearish configuration of daily MA’s add to existing negative tone, for eventual break and close below 10SMA which would generate bearish signal and open way for further retracement of 105.24/107.29 corrective upleg.
Bullish scenario requires firm break above 20SMA (106.58) to ease immediate bearish pressure, however, close above falling 30SMA is needed to confirm and signal extension of recovery leg from 105.24 (02 Mar low).
Res: 106.58; 107.00; 107.32; 107.67
Sup: 106.27; 106.02; 105.72; 105.45