USD/JPY outlook: Bear-trap underpins but recovery still faces headwinds
|USD/JPY
USDJPY remains constructive on Friday and attempts to further extend Thursday’s strong bounce, with recovery being supported by signals of a double bear-trap, following a false break below pivotal Fibo support at 156.04 and thin daily cloud (spanned between 155.83 and 155.50).
Rising and thickening daily cloud also underpins near-term action, however, headwinds are still to be expected, as structure on daily chart is still bearish.
Recovery needs to clear initial pivots at 157.73/88 (55DMA / Fibo 38.2% of 161.95/155.36) to reduce downside risk and open way for fresh acceleration towards next targets at 158.65/78 (falling 10DMA/50% retracement).
Caution on repeated daily close under 55DMA.
Res: 157.73; 158.30; 158.86; 159.52.
Sup: 156.91; 156.04; 155.36; 155.18.
Interested in USD/JPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.