USDJPY – recovery was limited for now but daily cloud twist continues to attract
Near-term bias remains at the upside as daily cloud twist continues to attract. However, recovery attempts from fresh low at 109.91 (01 Aug) stay capped under strong barrier at 111.00 (daily Tenkan-sen).
Bounce after strong downside rejection at 109.91 keeps near-term focus shifted higher, as slow stochastic is heading north on daily chart after reversing from o/s zone and shows more room at the upside and daily Tenkan-sen turned sideways from steep descend.
We need to see sustained break above Tenkan-sen barrier to open pivotal barrier at 111.34 (thinning daily cloud top / Fibo 61.8% of 112.19/109.91 downleg), break of which will be bullish.
Caution of early recovery rejection as overall structure is bearish, which would re-focus strong 110.00 support zone.
Res: 110.82; 111.00; 111.34; 111.65
Sup: 110.56; 110.14; 109.91; 109.26