USD/JPY fails at 112 handle, short break below 200-DMA - 111.78
USD/JPY closed the initial bearish gap open to edged higher in the Asian session.
But, upside failed at 112 handle, the pair has slipped lower to currently hover around 111.80 levels.
Technical studies are bearish. Stochs have rolled over from overbought levels and RSI is biased lower. MACD is showing a bearish crossover.
We also evidence a 'Bearish Cypher' pattern on daily charts which adds scope for downside.
200-DMA at 111.78 is offering strong support on the downside, break below will accentuate weakness.
Scope then for test of 100-DMA at 111.12. Bearish invalidation seen on retrace above 20-DMA at 112.35.
Support levels - 111.50 (Sept 26 low), 111.12 (100-DMA), 111, 110.75 (50-DMA)
Resistance levels - 112, 112.15 (5-DMA), 112.72 (Sept 21 high)
Good to short break below 200-DMA, SL: 112.15, TP: 111.50/ 111.15/ 110.75
But, upside failed at 112 handle, the pair has slipped lower to currently hover around 111.80 levels.
Technical studies are bearish. Stochs have rolled over from overbought levels and RSI is biased lower. MACD is showing a bearish crossover.
We also evidence a 'Bearish Cypher' pattern on daily charts which adds scope for downside.
200-DMA at 111.78 is offering strong support on the downside, break below will accentuate weakness.
Scope then for test of 100-DMA at 111.12. Bearish invalidation seen on retrace above 20-DMA at 112.35.
Support levels - 111.50 (Sept 26 low), 111.12 (100-DMA), 111, 110.75 (50-DMA)
Resistance levels - 112, 112.15 (5-DMA), 112.72 (Sept 21 high)
Good to short break below 200-DMA, SL: 112.15, TP: 111.50/ 111.15/ 110.75
