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USDJPY – Extended Weakness Below 111.60 Base Cracks Top Of Thick Weekly Cloud

The pair eventually broke below key near-term support at 111.60 zone (07/28 Feb lows) on extension of bear-leg from 115.49 that extended into seventh straight day in red.

Today’s probe below 111.60 handle cracked next supports at 111.38/34 (top of weekly cloud / Fibo 38.2% of 99.82/118.65 rally), signaling further weakness on clear break lower.

Daily MA’s (10/20/30/100 SMA) have converged in attempt to form multiple bear-cross, along with daily Tenkan-sen / Kijun-sen lines.

Focus is turning towards next targets at 110.21 (Fibo 138.2% projection) and psychological 110.00 support, however, thick weekly cloud that marks significant support may delay bears.

Also, strongly oversold slow stochastic and daily RSI approaching oversold territory, suggest some consolidative / corrective action in the near term, but no reversal signal seen so far.

Broken 111.60 base now acts as initial resistance, ahead of Tuesday’s high at 112.85.

Res: 111.60, 111.77, 112.57, 112.85
Sup: 111.21, 111.00, 110.21, 110.00

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