Technical Outlook USDJPY 23.05.2017

Technical Outlook USDJPY 23.05.2017

USDJPY

The pair is trading in directionless mode for the fourth day, after bounce from fresh one-month low at 110.23 was capped by descending 55SMA which continued to limit upside attempts.
Today’s action is capped by daily Kijun-sen line (111.34) with lower pivot at 110.74 (daily cloud base) being under pressure, on overall weaker greenback.
Bearish tone prevails on near-term studies while daily MA’s are in bearish setup and maintain downside pressure.
A probe below daily cloud and attempts towards strong supports at 110.23 / 00 (18 May low / psychological support) and 200SMA at 109.87 could be anticipated while 55SMA caps, as last week’s long bearish daily candle continues to weigh.
Descending 55SMA offers solid resistance (currently at 111.65), followed by daily cloud top at 111.80, which are expected to limit upticks and keep focus shifted lower.
Alternative scenario requires break above daily cloud to neutralize bearish pressure and open way for recovery extension towards next strong barrier at 112.30 (daily Tenkan-sen).

Res: 111.34; 111.65; 111.80; 112.30
Sup: 110.74; 110.50; 110.23; 110.00