USDJPY – bearish outlook below weekly cloud base
The pair moved lower in early European trading after recovery attempts overnight were repeatedly capped at 109.20 (Monday’s high).
Repeated close below weekly cloud base (109.10) maintains negative tone and adds to negative near-term outlook.
Overall bears are looking for fresh extension lower after completion of current brief consolidation, for test of trendline support at 107.83 (bull-trendline drawn off 77.12, 2012 low) and eventual push toward key support at 107.31 (08 Sep low).
Daily studies are in firm bearish setup and favor further weakness as sentiment for the US dollar remains negative.
Speech of President Trump and US policy decision are focused for fresh signals, but bears are expected to remain firmly in play while pivotal barrier at 110 zone (falling 10SMA / psychological resistance) stays intact.
Res: 109.10; 109.76; 110.00; 110.33
Sup: 108.50; 108.28; 107.83; 107.31