The pair moved higher on Friday after hitting fresh low at 110.61 the day before, so far unable to firmly break into thick weekly cloud that counteract broader bears (USDJPY left 8 consecutive bearish daily candles on steep descend from 115.49).
Bounce is seen as corrective ahead of fresh extension lower that eyes psychological 110.00 support, however, correction may extend as bullish signal is generating on daily chart slow stochastic reversal from oversold territory.
In addition, today’s close above weekly cloud top (111.36) would generate another bullish signal.
Solid barriers lay at 111.60 (former base) and (111.97 (broken Fibo 38.2% of larger 101.17/118.65 ascend), where upticks should be ideally capped.
Otherwise, extended correction could be anticipated on break above 111.97 and 112.47 (Fibo 38.2% of 115.49/110.61 downleg).
Res: 111.36, 111.60, 111.97, 112.47
Sup: 110.84, 110.61, 110.25, 110.00
