- USD/JPY has at last sold off again and the price is now below the daily Ichimoku cloud support where Japanese traders will pay particular attention to.
- The lagging span has also pierced into the cloud which will be monitored for when it clears the cloud, the case for an extended trend to the downside will be confirmed.
- Rebounds should remain tepid and if they fail to break the prior fractal low at 110.84, 10th April daily candle, this is likely to trigger losses to the 109.70, 27the March low guarding the 38.2% retracement target at 109.50.
- A break there opens risk to 107.70 and 10. Jan lows with the influence of the 61.8% Fibo key target.
Daily chart
4 Hourly chart (trickle room to 127.20% extension ahead of 110.03 in the near term)
Extra reading: USD/JPY at fresh lows as stocks extend decline while trade tensions hit markets – WSJ/SCWP
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