USD/JPY outlook: Mal fall further after completion of corrective phase

Slobodan Drvenica Windsor Brokers

USD/JPY

USD/JPY dips to three week low on Monday and hit Fibo 76.4% retracement of 141.68/149.40 corrective upleg, adding to signals that correction of larger downtrend is close to its end.

Strong drop last week (2.1%) completed a bearish engulfing pattern and registered weekly close below 100WMA (144.59), generating fresh bearish signal and setting scope for retest of 141.68 (August 4 low, the lowest since late December).

Bearish technical and fundamental studies contribute to growing signals that USDJPY may extend losses after completing correction.

Break of triggers at 141.68 and 140.48/25 (Fibo 61.8% of 127.22/161.95 / Dec 28 low) likely to spark fresh acceleration lower and dips below psychological 140 support.

Res: 144.58; 145.04; 146.27; 146.87.
Sup: 143.44; 142.58; 141.68; 140.48.

Interested in USD/JPY technicals? Check out the key levels

1. R3 148.31
2. R2 147.4
3. R1 145.87
PP 144.96
1. S1 143.44
2. S2 142.53
3. S3 141.01

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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