USD/JPY outlook: Reruns to full bearish mode on fresh risk aversion

Slobodan Drvenica Windsor Brokers

USD/JPY

Bears returned to play and fully reversed the recent bounce from new multi-month low (144.55), with strong bearish signals being developed on daily chart (double recovery rejection / bull-trap above converged daily Tenkan/Kijun-sen).

Deterioration outlook on the latest sharp increase of tariffs for all Chinese imports to the US and anticipated adequate counter measures from China, revived risk aversion and provided fresh boost to traditional safe haven yen.

Bears dented new low (144.55, posted last Friday) and eye immediate 144.13 (Fibo 76.4% of 139.57/158.87) violation of which to expose 141.64 (Sep 30 higher low) which guards key supports at 140.00/139.57 (psychological / 2024 low).

Former low at 146.53 (Mar 11) and broken Fibo 61.8% (146.95) reverted to resistances which should cap the upside and keep fresh bears alive.

Res: 146.60; 147.48; 148.19; 148.90.
Sup: 145.18; 144.13; 143.65; 142.97.

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

1. R3 149.77
2. R2 148.95
3. R1 147.61
PP 146.79
1. S1 145.45
2. S2 144.63
3. S3 143.29

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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