USDJPY – initial reversal signal needs confirmation on extension above 140
The USDJPY is consolidating above rising daily cloud in early Monday, trying to capitalize from initial reversal signals (strong rejection above converged 100/200DMA’s / two week downtrend contained by weekly cloud top / Friday’s bullish engulfing and close above daily cloud top).
Recovery was so far limited by initial Fibo resistance at 139.08 (23.6% of 145.06/137.23) keeping in play risk of stall, with slight bullish bias seen while the price stays above cloud top (138.38) though bulls need to regain pivotal barriers at 140.00/22 (psychological / Fibo 38.2%) to generate reversal signal.
Caution on return and close within daily cloud which would increase downside risk and signal possible end of brief corrective phase.
Res: 139.15; 140.00; 140.22; 140.98
Sup: 138.36; 137.92; 137.04; 136.14