'Bearish Cypher' on USD/JPY, weakness seen below 111.60
A renewed risk-aversion wave gripped markets on North Korea threats, boosting the safe-haven flows for the Yen.
Also, the Greenback is paring some of the FOMC-led gains, which is adding to downside pressure on USD/JPY.
The major is down 0.55% on the day, trading at 111.83 after hitting session lows at 111.65.
Daily cloud at 111.60 offers strong support on the downside, we see further weakness on break below.
The pair has completed a 'Bearish Cypher' pattern which adds scope for downside.
Break below 111.60 is likely to see test of 50-DMA at 110.34. Bearish invalidation above 112.95.
Support levels - 111.60 (cloud top), 111, 110.34 (50-DMA)
Resistance levels - 112.93 (5-DMA), 112.95 (78.6% Fib retracement of 114.495 to 107.318 fall), 113, 114.36 (double top)
Good to go short on break below 111.60, SL: 112.50, TP: 111/ 110.35/ 110
Also, the Greenback is paring some of the FOMC-led gains, which is adding to downside pressure on USD/JPY.
The major is down 0.55% on the day, trading at 111.83 after hitting session lows at 111.65.
Daily cloud at 111.60 offers strong support on the downside, we see further weakness on break below.
The pair has completed a 'Bearish Cypher' pattern which adds scope for downside.
Break below 111.60 is likely to see test of 50-DMA at 110.34. Bearish invalidation above 112.95.
Support levels - 111.60 (cloud top), 111, 110.34 (50-DMA)
Resistance levels - 112.93 (5-DMA), 112.95 (78.6% Fib retracement of 114.495 to 107.318 fall), 113, 114.36 (double top)
Good to go short on break below 111.60, SL: 112.50, TP: 111/ 110.35/ 110
