USDJPY – bulls need consolidation before attacking key 112.70/90 resistance zone again
Strong three-day recovery is taking a breather after rally was capped by falling 20SMA at 112.68 which formed bear-cross with 55SMA.
Consolidation so far found footstep at 112.32 (broken Fibo 38.2% of 114.73/110.83 descend) but overbought slow stoch and 20/55 bear-cross weigh and signal deeper pullback.
Next solid support lies at 112.00, with extended dips required to reverse above 111.80/75 (daily Tenkan-sen / 10SMA) to keep alive hopes of fresh upside attempts for test of strong resistance zone between 112.70 and 112.90 (20/55SMA’s / daily Kijun-sen and cloud top).
Sustained break here is needed to confirm bullish continuation.
Conversely, close below 112.75 would signal lower top at 112.68 and turn near-term risk lower.
Res: 112.68; 112.78; 112.90; 113.24
Sup: 112.32; 112.00; 111.75; 111.68