- The post-FOMC rejection from 109.30 region extended on Thursday.
- Break below 108.50-40 area seen as a key trigger for bearish traders.
Having failed to capitalize on the overnight move beyond the very important 200-day SMA, the USD/JPY pair witnessed some follow-through selling on Thursday and tumbled to near three-week lows.
The post-FOMC uptick failed near early August swing high, which coincides with 61.8% Fibonacci level of the 112.40-104.45 downfall and constituted towards a bearish double-top pattern on the daily chart.
Meanwhile, Thursday’s slide dragged the pair below the 50% Fibo. pivotal support and might now be seen as a key trigger for bearish traders, setting the stage for a further near-term depreciating move.
However, any subsequent slide below the 108.00 handle might attract some dip-buying interest near a five-month-old descending trend-line resistance breakpoint – currently around the 107.65 region.
The latter also nears 38.2% Fibo. level, which if broken might negate any near-term positive bias and accelerate the slide towards the 107.00 handle en-route the 106.65-60 next major support area.
On the flip side, 108.40-50 region now seems to act as an immediate resistance, above which the pair is likely to aim towards testing the 108.60-65 supply zone ahead of 109.00 handle (200-DMA).
USD/JPY daily chart
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