USDJPY – broken weekly cloud base caps consolidation for now
The pair is consolidating above last Friday’s fresh low at 108.28 on Monday, with the action being so far capped by broken supports at 109.06/10 (Fibo 76.4% / weekly cloud base) now acting as solid resistances.
Friday’s close below these levels was strong bearish signal for further weakness, but oversold daily studies may delay bears.
Limited upside action is seen preceding fresh weakness as bears eye targets at 107.80 (bull-trendline drawn off 2012 low at 77.12) and key m/t support at 107.31 (2017 low, posted on 08 Sep).
Recovery should ideally hold below weekly cloud base, with stronger upticks to be capped by 110.00 resistance (psychological barrier / falling 10SMA).
Res: 109.10; 109.76; 110.00; 110.20
Sup: 108.50; 108.26; 107.80; 107.31