USDJPY – risk of dip to 108.73 Fibo support on confirmation of reversal
The pair extended weakness on Thursday and cracked 10SMA support at 109.15, but so far without break lower.
Bearish signal is generating on formation of Doji reversal pattern on daily chart, which looks for daily close below 10SMA for confirmation.
Firm break lower would risk extension of pullback after broader bulls ran out of steam at psychological 110.00 barrier and kept next key barrier – 200SMA intact and expose next key support at 108.73 (Fibo 38.2% of 106.61/110.03 upleg).
The notion is supported by daily RSI and slow stochastic reversing from overbought territory and reinforced by bearish divergence on slow stochastic, as well as weakening momentum studies.
Res: 109.53; 109.88; 110.03; 110.20
Sup: 109.15; 108.85; 108.73; 108.32
