USD/JPY Outlook: Bears on Hold above 20SMA, But Converged MA’s Mark Strong Obstacle

Technical analysis of Forex market

The pair consolidates above rising 20SMA (currently at 111.04) which prevented deeper fall after dollar accelerated lower on downbeat US NFP data on Friday. Dip was contained by broken Fibo 61.8% support (110.74) and today’s recovery attempts are underpinned by rising daily Kijun-sen. Pivotal barrier at 111.38 (converged 10/200/100SMA’s) needs to be cleared to generate stronger recovery signal and neutralize downside threats. Otherwise, the downside is expected to remain vulnerable while converged MA’s cap, as daily momentum remains weak. Sustained break below 20SMA would open 30SMA (110.58) and Fibo 23.6% of 104.59/112.13 (110.35).

Res: 111.38; 111.65; 111.85; 112.13
Sup: 111.04; 110.78; 110.58; 110.35

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