“¢ The USD/JPY pair extended its pullback from two-week tops and traded with a mild negative bias for the second consecutive session, albeit showed some resilience near 100-hour SMA.
“¢ However, the fact that the pair already seems to have found acceptance below 23.6% Fibo. level of the 109.02-110.68 up-move points to further weakness amid the prevailing risk-off mood.
Technical indicators on the 1-hourly chart have struggled to gain any positive traction and maintained their bearish bias on the daily chart, reinforcing the negative outlook and supporting prospects for a further intraday decline.
Meanwhile, the latest leg of a downtick has been along a short-term descending trend-channel and given the recent bounce from multi-month lows, constituted towards the formation of a bullish continuation – flag chart pattern on the 1-hourly chart.
Hence, it would be prudent to wait for a convincing break through the mentioned 100-hour SMA support before positioning for a slide back below the key 110.00 psychological mark or a sustained move beyond the trend-channel resistance for a possible move towards the 111.00 handle.
USD/JPY 1-hourly chart
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