USDJPY – weaker near term tone on downbeat US data
The USDJPY started to lose traction after repeated failure to clearly break through pivotal Fibo resistance at 134.75 (61.8% of 137.90/129.64 descend).
Fresh weakness was sparked by stronger than expected rise in US weekly jobless claims and significantly weaker Philly Fed reports in April, which add to already gloomy outlook.
The price returned into thick daily Ichimoku cloud (cloud top lays at 134.45) but remains within a congestion which extends into fourth straight day, keeping intact larger bulls off 129.64 (Mar 24 low).
Daily studies show stochastic emerging from overbought territory and fading bullish momentum, generating initial signals of pullback, which sees a minimum requirement for confirmation on break of 133.70 zone (congestion base, reinforced by rising 10DMA).
Loss of 133.70 supports is also needed to signal a bull-trap above 134.75 Fibo level and open way for deeper pullback which will be seen as a healthy correction while extended dips hold above daily cloud base (132.56).
Otherwise, near-term action would be paused for extended consolidation before bulls resume, with sustained break of 134.75/135.13 pivots (Fibo / Apr 19 high to spark fresh acceleration higher.
Res: 134.45; 134.75; 135.13; 135.95
Sup: 133.70; 132.99; 132.56; 132.58