USDJPY – hopes for stronger recovery while 106.37 holds but overall bias remains bearish
The pair trades in narrow consolidation on Thursday, following previous day’s fall, which found footstep above Monday’s low at 106.3.
Scope for stronger recovery remains in play while the price holds above 106.37 support, however, daily techs in firm bearish setup keep the downside at risk.
Today’s action was so far capped by 10SMA (106.92), with firm break above 10 SMA and 107 barrier (daily Tenkan-sen) required to generate fresh bullish signal for extended recovery.
Conversely, loss of 106.37 handle (also near Fibo 61.8% of 105.54/107.90 recovery leg) would generate bearish signal and risk return to 105.54 (16 Feb low).
Res: 106.90; 107.00; 107.52; 107.67
Sup: 106.54; 106.37; 106.10; 105.54