USDJPY - A Temporary Respite

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USDJPY
Weekly

Daily


USDJPY bounced off the 50% retracement level of 109.35 area with buyers stacking their orders around 108.8 to 109 level. This results in the double wick rejection we saw on the D time frame. While I am not bullish for USDJPY in the bigger picture, this technical rejection does provide clues for reversal for USDJPY, at least a temporary bounce. On the W chart, we can see that USDJPY was bearish the week before and it closed with a doji this week. Range for the week extends beyond the range of last week but it closed where it started. This is evidence of a good "fight" between the bulls and bears and neither side is winning.

My bias for UJ in the coming week is towards the short side, expecting a bounce up to 109.60 to 109.70 first, then the 111 area where the existing trend line is. Should the slide continue without a bounce, UJ should slide to the 108.40 area.