USDJPY – scope for fresh attack at 108 zone in play while key supports 107.00/106.90 hold
The pair eases on Wednesday after fresh strength on Tuesday spiked at 107.67, approaching key barriers at 108 zone (21 Feb recovery top / falling daily Kijun-sen).
Hawkish stance from Fed Chair Powell keeps the greenback at the front foot and showing scope for eventual attack at 108 zone, break of which is needed to generate stronger bullish signal from extension of recovery rally from 105.54 (16 Feb low).
However, caution is required as overall picture is bearish and profit-taking on recent dollar longs could put the greenback under fresh pressure.
Significant supports lay at 107.00/106.90 zone (Fibo 38.2% of 105.54/107.90 / 10SMA) and bullish outlook is expected to remain in play while the latter supports hold.
Otherwise, fresh bearish signal would be generated on firm break lower.
USDJPY’s weekly performance is shaped in long legged Doji candle which signals strong indecision, while the pair is on track to complete the second straight month in red, which is seen as negative signal.
Res: 107.52; 107.67; 107.90; 108.00
Sup: 107.00; 106.90; 106.72; 106.44