Forex

USD/JPY Outlook: Bearish Outside Day Sparks Extension Of Pullback From New High At 109.85

The pair remains firmly in red on Tuesday (following Monday’s 1.05% drop) and extends pullback through 108.40/24 support zone, consisting of 200DMA/Fibo 38.2% of 105.98/109.85 / 10DMA / 100DMA. Monday’s long red daily candle formed bearish outside day which signals top and adds to bearish pressure. Fresh extension lower cracked supports at 107.91 (20DMA / 50% retracement and 107.75 (55DMA), approaching next key supports at 107.53 (daily cloud top) and 107.46 (Fibo 61.8% of 105.98/109.85). Falling daily RSI/stochastic/momentum and MA’s turning to bearish setup, with daily close below 200/100DMA’s required to maintain negative near-term outlook.

Res: 108.24, 108.40, 108.54, 108.82
Sup: 107.91, 107.75, 107.53, 107.46

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