USDJPY – bears remain in play; consolidation to precede fresh downside
The dollar rose above 109 barrier in early Europe after retesting support at 108.50 zone overnight, bur recovery was so far capped by sideways-moving 10SMA (109.24).
Extended consolidation under falling 20SMA (109.74) before fresh attempts at key 108.28 support is seen as likely near-term scenario, as daily studies remain negative and building bearish momentum.
Eventual break below 108.28 (26 Jan low) would open way for test of psychological 108.00 support and final push towards key short-term support at 107.31 (09 Sep low).
Conversely, lift above 20SMA (109.74) would delay bears, but extension above 110.32/48 (Fibo 38.2% of 113.63/108.28 / 02 Feb recovery high)is needed to neutralize and turn focus higher.
Res: 109.24; 109.54; 109.74; 110.32
Sup: 108.50; 108.28; 108.00; 107.31