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Technical Outlook: USDJPY – Consolidation Within Daily Cloud Keeps Near-Term Focus At The Upside

The pair eased further on Friday after strong bulls failed to clearly break above daily cloud top at 112.86, on spike at 113.04, which was capped by 100SMA.

Bearish close on Thursday with long upper wick on daily candle, weighs on near-term action, however, fresh extension of pullback from 113.04 peak was so far contained by daily cloud base at 112.15, keeping hopes of fresh attempts above the cloud in play.

Risk of deeper pullback remains in play as slow stochastic is reversing from overbought territory and daily RSI is turning south.

Firm break below daily cloud would face a plethora of supports that start with daily 55/weekly Tenkan-sen at 111.80, rising 10 SMA at 111.58 and weekly cloud top/daily Tenkan-sen at 111.36/32, which should contain extended corrective dips.

Only close below the latter would undermine broader bullish structure and signal deeper correction.

Conversely, close above 112.67 (Fibo 61.8% of 115.49/108.11 descend) and daily cloud will be seen as strong bullish signal for further upside.

Res: 112.65, 112.85, 113.04, 113.75
Sup: 112.15, 111.80, 111.58, 111.36

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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