USDJPY The pair dipped to 113.33 in early Thursday’s trading after Wednesday’s rally hit new over three-month high at 114.23 but the day ended in red after quick pullback, signaling repeated upside rejection.
Bulls stalled just ahead of 114.33 barrier (Fibo 61.8% of 118.66/107.31 fall), signaling further consolidation before final break higher.
Overall bullish structure seems to lack catalyst for sustained break above 114.00 which would signal continuation of larger uptrend through 114.33 Fibo barrier and former tops at 114.36/49 (07 May / 09 July respectively).
Dips were so far contained above 113.24 higher base (23/24 Oct lows) which is seen as ideal support, however, extension towards 112.99/80 (rising 10/20SMA’s) cannot be ruled out.
Only firm break below the latter supports would sideline bulls and signal correction.
Slow stochastic is hovering around overbought zone boundary and supports scenario of stronger correction.
The greenback eyes today’s release of US weekly jobless claims and pending home sales for fresh signals, with upbeat results expected to lift the dollar
Res: 113.80, 114.09, 114.23, 114.33
Sup: 113.33, 113.24, 112.80, 112.52
