USD/JPY outlook: Signals of bearish continuation expose Fibo target at 135.47

Slobodan Drvenica Windsor Brokers

USD/JPY

Fresh bearish acceleration on Monday (down 1.1% since opening), broke clearly through pivotal Fibo support at 138.62 (61.8% of 130.39/151.94) which recently contained several attacks and cracked Nov 15 spike low at 137.67, hitting the lowest since late August.

This signals continuation of larger downtrend from multi-decade peak (151.94), which paused for consolidation in past two weeks after a massive losses in the first week of November.

Bears focus target at 135.47 (Fibo 76.4%) but see a minimum requirement on close below 138.62 (Fibo 61.8%) for confirmation.

Daily studies show strong negative momentum and MA’s in full bearish setup that reinforces bearish structure, along with a massive monthly bearish candle (USDJPY is on track for a drop of over 7% in November).

Res: 138.62; 139.50; 139.79; 140.00.
Sup: 137.49; 136.17; 135.81; 135.47.

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

1. R3 140.85
2. R2 140.22
3. R1 139.63
PP 139
1. S1 138.41
2. S2 137.78
3. S3 137.19

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.