USD/JPY shallow rebound leaves bear risks intact into FOMC
- A minor advance, but still confined to the breakdown range from last Thursday after a very weak Friday close, with consolidation still in the vicinity of the setback low of last week.
- The previous breakdown through the early June spike low and the push back below the previously probed 100-day MA has reinforced the topping structure for a negative outlook into latter June.
- We still see risk this week to the key 92.57 April trough, which we would look to try to initially hold, with overshoot risk to an important low from Feb at 90.87.
- Surrender here would then target the 200-day MA, currently 89.40.
- Above 96.65 eases bear risks with a neutral tone needing 99.30.
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