HomeContributorsTechnical AnalysisTechnical Outlook: USDJPY – Daily Cloud Top Support Under Strong Pressure On...

Technical Outlook: USDJPY – Daily Cloud Top Support Under Strong Pressure On Fresh Risk-Off Mode Over North Korea

The pair is standing at the back foot in early Tuesday’s trading and holding just above fresh one-week lows at 109.47/49 (Mon/Tue lows), as strong rhetoric between the US and North Korea increased geopolitical tensions again.

The greenback holds in red for the third straight day against yen and probed again below strong support at 111.54 (top of thick daily cloud) as war of words between two countries escalated on Monday, triggering fresh safe-haven buying.

The risk of deeper pullback is building, with firm break below key support zone between 111.54/44 (daily cloud top/rising 10SMA) is needed to generate stronger bearish signal.

Plethora of supports that lay below (111.13/07, daily Tenkan-sen/100SMA and thick 4-hr cloud, spanned between 111.12/109.59), may limit yen’s risk-off rally, as strong bullish setup of daily studies favors limited correction off 112.71 high before bulls resume.

Today’s focus is on the speech of Fed Chair Janet Yellen (due at 16:45 GMT), as market participants are awaiting more clues on whether the Fed remains on track to raise interest rates in December, as signaled on last week’s policy meeting.

Hawkish stance from Yellen would offer fresh support to the greenback and offset negative impact from the situation over North Korea. Bullish scenario requires sustained break above 200SMA (112.09) to generate fresh bullish signal and turn near-term bias higher.

Res: 111.80, 112.09, 112.52, 112.80
Sup: 111.54, 111.11, 110.65, 110.43

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Featured Analysis

Learn Forex Trading