USDJPY – trading in extended consolidation between 20 and 10SMA's
The pair is holding in consolidation for the fourth straight day, entrenched in the range between 20SMA (112.33) and converged 10/55SMA’s (112.85).
Mixed daily techs do not provide clear direction signal but last week’s long bearish candle continues to weigh and keep the downside at risk.
Clear break below cracked 20SMA would open way for fresh attack at next pivotal support at 111.95 (Fibo 61.8% of 110.83/113.74 rally) and shift near-term bias lower on break.
Conversely, sustained break above 10/55SMA’s is needed to turn focus higher and signal higher low formation at 112.00 zone (lows of 14/15 Dec).
Vote on US tax bill remains one of key events for the dollar, with vote in US Senate planned as early as today.
Res: 112.66; 112.85; 113.09; 113.57
Sup: 112.50; 112.33; 111.95; 111.74