USDJPY – Friday’s long-legged Doji warns of strong indecision at key 108.28/00 supports; US CPI data eyed for stronger signal
The pair stands at the back foot at the beginning of the week with limited recovery attempts in Asia. Friday’s long-legged Doji signaled strong indecision at key support at 108.28 (26 Jan low) cracked on Friday’s brief dip to 108.04.
Daily studies are in firm bearish setup and keep the downside at risk, extended consolidation phase above 108.28 seems to be over.
Firm break through supports at 108.28/00 would open way for final push towards key short-term support at 107.31 (03 Sep low) to fully retrace 107.31/114.73 correction.
However, the pair may extend consolidation, awaiting Wednesday’s US CPI data, which could be a catalyst.
Meanwhile, the pair is expected to hold between 108.28 and 109.20 (daily 10SMA) with break above 10 SMA to sideline immediate downside risk.
Res: 109.20; 109.78; 110.18; 110.48
Sup: 108.28; 108.00; 107.31; 107.00