USDJPY – bulls need clear break above 200SMA to resume; corrective dips may precede
The pair is up on Wednesday after bulls took a breather on Tuesday (Doji candle) and attack key barrier at 110.14 (Fibo 61.8% of 111.39/108.11, reinforced by 200SMA).
Break and close here is needed to strengthen bulls and generate strong signal for continuation of recovery leg from 108.11 (29 May) towards 110.62 (Fibo 76.4%) and psychological 111.00 barrier.
Bullish setup of daily MA’s supports, however, flat momentum and overbought slow stochastic warn that bulls may show stronger hesitation to clear key obstacles.
Top of thick 4-hr cloud (also session low) marks initial support at 109.75, followed by converging 5/30SMA’s (109.60/66), where dips should find footstep to keep bulls intact.
Res: 110.14; 110.62; 111.00; 111.39
Sup: 109.75; 109.60; 109.38; 109.12