Mon, May 29, 2023 @ 06:10 GMT
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USDJPY – Consolidation Above 110.00 To Precede Fresh Bears, Weekly Cloud Top Caps

The pair shows hesitation at psychological 110.00 support, reinforced by daily Kijun-sen line (yesterday’s low was at 110.09), as subsequent bounce left long-tailed daily candle.

Monday’s close below weekly cloud top (111.36) is maintaining negative tone, as recovery attempts so far did not show stronger upside action.

However, reversal of slow stochastic on daily chart suggests extended consolidation, which should be capped under weekly cloud top, before bears resume.

Final break below 110.00 handle would expose supports at 109.50/00 and could extend towards 200SMA (108.25) on stronger bearish acceleration.

Daily MA’s in firm bearish setup support the notion.

Alternative scenario requires close above weekly cloud top to signal extended correction, with upper breakpoint at 112.15 (Fibo 38.2% of 115.49/110.09).

Res: 110.81, 111.00, 111.36, 111.60
Sup: 110.50, 110.00, 109.50, 109.00

Windsor Brokers Ltd
Windsor Brokers Ltd
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