- USD/JPY price action dips into weekly cloud, bias remains lower.
- Bears remain in control amid risk-aversion, as treasury yields and equities are sold-off into unwinding of the Trump trade, after Friday’s Healthcare bill failed to clear the House vote.
- Upside capped at 38.2% Fib at 111.07, next immediate support lies at 110.11 (weekly 200-SMA) and then 109.80 (Nov 18 low).
- Price action is currently holding minor support at 110.26 (Nov 22 low). Break below will see further weakness.
- Technical studies are bearish, RSI weak at 30 levels and biased lower. MACD supports downside.
Support levels - 110.26 (Nov 22 low), 110.11 (weekly 200-SMA), 109.80 (Nov 18 low)
Resistance levels - 111.07 (5-DMA & 38.2% Fib), 111.36 (Nov 21 high), 112
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Bearish Neutral
1D Bearish At oversold
1W Bearish Neutral
Recommendation: Good to go short on rallies around 110.60/80, SL: 111.10, TP: 110.25/ 110/ 109.80
