USDJPY: Bearish, But Around Weekly Support!
As long as 112.35 resistance holds on a daily closing basis, the USDJPY remains on the downside to the 111.75 levels, a halt is likely but a cut would open 111.05 levels, further down, support comes at the 110.50 levels.
Note that the pair is around weekly chart support at 111.65 which suggests possible rebound to the upside, a daily closing above 112.35 is needed to open 112.85/113.38 levels, stability below 112.35 will keep the pair under pressure.
On the upside, a sustained breakout- daily closing – above 112.35 will bring limited gains below 112.85/113.38 levels before another fall, above 113.38 will reverse risk to the upside to the 114.54/114.88 levels.
Conclusion: The USDJPY continues to face downside threats below 113.38 levels even in the case of a corrective recovery…
Support:111.75, 111.05, 110.50, 110.05
Resistance: 112.35, 112.85, 113.38, 114.27