HomeContributorsTechnical AnalysisTechnical Outlook: USDJPY Falls Sharply On Fresh Risk Aversion

Technical Outlook: USDJPY Falls Sharply On Fresh Risk Aversion

The pair was sharply down on Friday, driven increased risk aversion after President Trump’s comments on North Korea.

Fresh bears extended below 111.00 handle and touched Fibo 61.8% of 110.23/112.12 support, signaling that recovery phase off 110.23 (18 May low) may be over.

Repeated failures to break and close above daily cloud top (111.80) resulted in fresh weakness, as recovery rally stalled here, despite brief upticks above 112.00 barrier.

Daily studies are turning into bearish setup on latest weakness and signal increased risk of further easing which may result in full retracement of 110.23/112.12 corrective upleg and test of psychological 110.00 support, reinforced by 200SMA.

Corrective upticks on oversold near-term studies should be capped by broken daily Kijun-sen at 110.62 which guards daily cloud top barrier.

Res: 111.30, 111.62, 111.80, 112.12
Sup: 110.90, 110.50, 110.23, 110.00

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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