USDJPY – bears penetrate daily cloud; signal further weakness
The pair penetrates daily cloud, pressured by fresh dollar’s weakness, signaling extension of pullback from 114.73 top, which was paused for two-day consolidation.
Daily close below key 111.90/70 supports (daily cloud top / Fibo 38.2% of 107.31/114.73 / converged 100/200SMA’s) is needed to signal deeper fall into daily cloud which is spanned between 111.94 and 110.37.
Next target lies at 111.02 (50% retracement) but bears could extend towards cloud base (110.37) and Fibo 61.8% (110.15) on stronger bearish acceleration.
Broken cloud top now acts as immediate resistance with further barriers at 112.46 (55SMA) and Monday’s high / falling daily Tenkan-sen at 112.71/81, offering decent resistance.
Res: 111.90; 112.46; 112.71; 112.81
Sup: 111.47; 111.02; 110.66; 110.37