USDJPY – consolidation above 111.02 target to precede fresh bears
The pair holding within narrow consolidation above target at 111.02 (50% retracement of 107.31/114.73 ascend) in early Thursday’s trading.
Strong bearish acceleration on Wednesday eventually took out key supports at 111.90 (daily cloud top) and 111.70 (converged 100/200SMA’s) and generated strong signal of bearish continuation.
Bids at 111.00 zone could trigger extended consolidation, however, with limited upside action seen ideally capped by 100/200 SMA’s, guarding daily cloud top.
Firm break below 111.02 support would open way towards daily cloud base (110.37) and Fibo support at 110.15 (61.8% retracement of 107.31/114.73).
However, holiday-thinned trading may delay bears.
Res: 111.70; 112.01; 112.48; 112.90
Sup: 111.02; 110.66; 110.37; 110.15