Thu, Feb 02, 2023 @ 18:14 GMT
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USD/JPY: Recovery Shows Initial Signs of Stall

The USDJPY remains at the front foot and rose to one-week high on Wednesday, but bulls face headwinds at 134.40 zone and pulled back after failing to break through barriers provided by daily Tenkan-sen / 50% retracement of 138.17/130.56, which generates initial signal of recovery stall.

Daily studies support the notion as 14-d momentum indicator remains in the negative territory and moving averages are in bearish setup, with triple death-cross (5/200; 10/200 and 20/200 DMA’s) weighing on near-term action.

Daily close below 134.40 zone would add to negative signals and keep the downside vulnerable, but return below 5DMA (133.08) is required to signal that bears are re-taking control.

The pair is on track to end the second straight month with strong losses and monthly indicators are in steep decline, which adds to weakening structure and favors bearish scenario on the larger picture for now, however, bears look for a monthly close below cracked Fibo support at 133.09 (38.2% of 102.59/151.94 ascend) for confirmation.

Res: 134.40; 135.26; 136.11; 136.37.
Sup: 133.47; 133.08; 132.12; 130.56.

Windsor Brokers Ltd
Windsor Brokers Ltd
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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