USDJPY – weekly inverted hammer suggests that bears may lose traction at the zone of key Fibo support

USDJPY remains in red for the third consecutive day and hits again pivotal Fibo support at 151.50 (38.2% of 137.57/158.87).

Recent attack was contained at this zone that validates support, setting scope for another rejection here that would add to scenario of healthy correction before broader bulls resume.

Although daily studies are negative (strengthening bearish momentum / formation of 10/200 DMA death cross) and favor further downside, inverted hammer candlestick on weekly chart warns of potential bounce.

In such scenario, bulls will face several strong obstacles, 200DMA (152.73) and more significant base of thick daily cloud (153.76) violation of which will be required to generate reversal signal and expose next key barriers at 154.80/90 (Feb 12 lower top / 50% retracement of 158.87/150.93 bear-leg).

Watch reaction at 151.00 zone for fresh direction signals.

Res: 152.37; 152.73; 153.12; 153.76
Sup: 151.50; 150.93; 150.00; 149.22