U.S President remarks have altered the USDJPY near-term landscape. The price has traded through the target 113.00 we set in early July whereas failed at the supply zone 113.00-113.30 levels and lost the initial support at 112.20 on Friday and another in today’s Asia session at 111.00. Thus, we are focusing this week on the other key supports finds at 110.50 its 50MA and 110.00 its 38.2 fib reaction.
Furthermore, if lost the 50MA a new downward wave towards the 50.0% fib reaction which coincides with the 100MA finds at 109.00 by the end of this week.
Selling pressure remains very strong; underlying indicators are remaining bearish in the daily chart. As we forecast last week a recovery back above 112.20 and 113.30 seems difficult. Selling on rising favors the trend with the stop loss above 113.30
Intraday resistance: 111.35, 111.70 and 112.20
Support: 110.50 and 110.00
Weekly resistance: 112.20 and 113.30
Support: 110.50 and 109.00
Furthermore, if lost the 50MA a new downward wave towards the 50.0% fib reaction which coincides with the 100MA finds at 109.00 by the end of this week.
Selling pressure remains very strong; underlying indicators are remaining bearish in the daily chart. As we forecast last week a recovery back above 112.20 and 113.30 seems difficult. Selling on rising favors the trend with the stop loss above 113.30
Intraday resistance: 111.35, 111.70 and 112.20
Support: 110.50 and 110.00
Weekly resistance: 112.20 and 113.30
Support: 110.50 and 109.00