USDJPY – limited recovery but immediate downside risk is sidelined
The pair eased from session high at 106.44, where Fibo 23.6% of 110.28/105.24 fall capped the extension of Monday’s strong rally.
Bounce from new 16-month low at 105.24 sidelined immediate downside risk, however, daily techs remain in full bearish setup and keep the pair under strong pressure.
Near-term action may hold in extended consolidation as slow stochastic emerged from oversold territory, with stronger upticks to be capped at 107 zone (Fibo 38.2% of 110.28/105.24 / falling 20SMA) ahead of release of US NFP data which could provide stronger signal.
Res: 106.44; 106.63; 107.15; 107.52
Sup: 105.95; 105.54; 105.24; 105.00