FxWirePro: 'Bearish Cypher' pattern raises scope for downside in USD/JPY, bias lower, stay short

• USD/JPY down 0.27% on the day at the time of writing, intraday bias bearish.
   
• BoJ Gov Kuroda reiterated central bank’s vow to maintain extraordinary stimulus until inflation moves steadily above its 2 percent target.
   
• Yen slipped lower, pushing USD/JPY to session highs at 112.87, before paring gains to currently trade at 112.40 levels.
   
• Technical studies are bearish. Stochs have rolled over from overbought levels and RSI is biased lower.
   
• MACD is on verge of bearish crossover on signal line which if confirmed will add bearish bias.
   
• We evidence a 'Bearish Cypher' pattern on daily charts which adds scope for downside.
   
• Immediate hurdle lies at 112 handle, breach there would accentuate weakness.

Support levels - 112 (nearly converged 20-DMA and 5W-SMA), 111.38 (cloud top), 111.10 (38.2% Fib retrace of 107.318 to 113.439 rally)

Resistance levels - 112.64 (5-DMA), 113, 113.43 (Oct 6 high)

Recommendation: Good to go short on rallies around 112.40/50, SL: 113, TP: 112/ 111.60/ 111.40/ 111.10

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