USDJPY – strong hesitation at 111.02 Fibo support could result in extended consolidation
The pair shows strong hesitation at 111.02 support (50% of 107.31/114.73 rally) which was repeatedly cracked (dips to 110.83/92 on Mon/Tue) but so far without clear break lower.
Near-term action may hold in extended consolidation above 111.02 pivot, as slow stochastic is reversing from oversold territory and generating bullish signal.
However, limited upside is expected (ideally to be capped by 200SMA (111.68) to keep bearish bias intact.
Bears need sustained break below 111.02 to signal resumption and expose targets at 110.70 (daily cloud base) and 110.15 (Fibo 61.8% of 107.31/114.73).
Only extension and close above daily cloud top (112.16) would neutralize downside risk and signal stronger correction.
Res: 111.38; 111.70; 112.16; 112.62
Sup: 111.02; 110.83; 110.70; 110.15