USDJPY – consolidation to precede fresh weakness
The pair is consolidating above five-week low at 111.88 on Monday after cracking key support at 111.90 (Fibo 38.2% of larger 107.31/114.73 ascend) but without break lower for now.
Bearish near-term bias favors further downside after Friday’s strong fall and last week’s bearish close (the second straight week in red).
Sustained break below 111.90 (Fibo 38.2% support) and 111.71 (converged 100/200 SMA’s) needed to confirm bearish continuation and open 111.46 (top of thick daily cloud) which marks next strong support.
Double bear-cross (10/20SMA and Tenkan-sen / Kijun-sen with 10/30SMA bear-cross forming) adds on bearish pressure for extension of corrective leg from 114.73 peak.
Limited upside action is expected before bears resume with broken 55SMA (112.34) expected to ideally cap with extended upticks to be limited by falling hourly cloud (112.68/86).
Res: 112.34; 112.68; 112.86; 113.19
Sup: 111.90; 111.71; 111.46; 111.02