The USDJPY is consolidating in early Thursday under new one-month low (109.11), hit after strong drop in past two days.
Near-term structure weakened after the latest bearish acceleration and remains weighed by multiple failures above pivotal barriers at 110.00/19 (psychological/daily cloud top) that points to bull-trap formation.
Daily MA’s turned to full bearish setup and formed a number of bear-crosses, while negative momentum remains strong and both contributing to negative near-term outlook.
Violation of pivotal supports at 109 zone (109.11/108.72) would further weaken the structure (as break here would signal and end of month-long congestion, presented by four consecutive weekly Dojis) and risk extension towards key supports at 108.19/107.47 (Fibo 38.2% of 102.59/111.65/Apr 24 trough).
Only rebound through 109.80 / 110.00 (converged 10/20DMA’s/psychological) would sideline bears.
Res: 109.60, 109.80, 110.00, 110.26.
Sup: 109.11, 108.72, 108.50, 108.19.
