USDJPY is expected to consolidate before bulls resume; 113.00 zone marks solid support
The pair is back into daily cloud on Wednesday following repeated rejection under 113.81 target (Fibo 76.4% of 114.73/110.83), with double Doji (Mon/Tue), giving initial signal of rally’s stall.
Fresh downside attempts today were so far limited and strongly rejected at 113.12, however, near-term risk is expected to remain shifted lower while the price action is capped by cloud top (113.51).
Bullish setup of daily studies supports for further upside but bulls may take a breather for corrective dip, signaled by strongly overbought slow stochastic turning south on daily chart.
Buying dips towards 113.00 zone remains favored scenario.
FOMC verdict due later today is in focus for fresh signals.
Res: 113.51; 113.81; 114.34; 114.45
Sup: 113.25; 113.12; 112.90; 112.58