USDJPYs’ efforts to gain ground were slashed around a two-month high of 109.84, and the price was returned beneath the Ichimoku cloud and to the proximity of the 200-period simple moving average (SMA) at 107.44. Additionally, despite the recent stall in the red Tenkan-sen line, the Ichimoku lines negative tone remains intact and could receive a boost from the completed bearish crossover between the 100-period SMA and the 50-period one.
The short-term oscillators at this point reflect prices’ efforts to improve with the MACD above its red signal line in the negative area and the RSI rising beneath the 50 threshold. Moreover, the %K line has turned up attempting to overlap its red %D line.
Should sellers steer the price lower, the 107.00 handle may unveil initial support ahead of the 106.57 low. A step underneath may encounter the 106.45 barrier, which is the 50.0% Fibonacci retracement of the up leg from 101.17 – 111.71, prior to challenging the 106.19 – 106.00 zone of troughs. Extending the descent past the 106.00 critical mark may accelerate the price towards the 61.8% Fibo of 105.20.
To the upside, immediate resistance could arise from the 200-period SMA at 107.44 until the 38.2% Fibo of 107.68, which also encompasses the 107.56 nearby high. Overcoming these obstacles, the 107.87 barrier, where the bearish crossover in the SMAs resides, could obstruct the climb from reaching the 108.24 hurdle. If buyers persist and overrun the cloud, the 108.60 border could unfold ahead of the 23.6% Fibo of 109.23.
In brief, USDJPY has reverted to a directionless mode, which is holding in the short-to-medium term timeframe. Nevertheless, for a clear direction to be revealed in the short-term, the price would need to break above 109.84 or below 106.00.
