USDJPY – strong signals for extended recovery but plenty of barriers en-route
Strong recovery rally on Wednesday left long bullish daily candle and formed bullish outside day, generating positive signal and sidelining immediate downside risk.
Brief extension higher today, cracked important barrier at 111.41 (Fibo 38.2% of 113.38/110.19 downleg) but without firm break so far.
Plethora of barriers weighs and threats of recovery stall. Falling 10 SMA lies above cracked Fibo barrier at 111.10 and marks next obstacle at 111.60, guarding upper pivots at 111.70/72 (200SMA / weekly cloud top).
Sustained break here would trigger stronger retracement of 113.38/110.19 downleg.
Res: 111.41; 111.60; 111.70; 111.87
Sup: 111.10; 110.60; 110.15; 110.00