- Struggles to build on the intraday move up beyond 38.2% Fibo. level.
- Bearish double-top chart pattern points to further near-term downfall.
The USD/JPY pair filled the weekly bearish gap, albeit struggled to extend the attempted intraday recovery and remained depressed below the 107.00 handle – marking 38.2% Fibonacci retracement level of the 104.46-108.48 recent recovery move.
Meanwhile, the downside remained cushioned near a support marked by 50% Fibo. retracement level, around mid-106.00s, which should now act as a key trigger for short-term traders and help determine the pair’s next leg of a directional move.
Given the recent failures near the 108.45-50 region, forming a double-top pattern on short-term charts, a decisive break below the mentioned support will confirm a bearish breakdown and set the stage for an extension of the recent downward trajectory.
Meanwhile, technical indicators on 4-hourly/daily charts maintained their bearish bias and support prospects for a further downside, though bullish oscillators on the 1-hourly chart warrant some cautions before placing aggressive bearish bets.
On the flip side, sustained strength beyond the 107.00 handle might prompt some short-covering move and lift the pair further towards the 107.45-50 horizontal resistance – also nearing 23.6% Fibo. level – en-route the 108.00 round -figure mark.
USD/JPY 4-hourly chart
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