USD/JPY - Forex Update - Weekly

The Pair may trade with a bearish bias this week after failing to recover from a fall below the previous uptrend support line - now a resistance - which runs from the May 17 trough of 108.99. The daily MACD indicator is in bearish mode, and the stochastic indicator could stay oversold if USD/JPY remains in a bearish-trending mode.

Immediate support lies at Friday's low of 113.99, a breach of which would expose further downside toward 113.44. This is the 50% Fibonacci retracement of the 108.99-117.89 advance and is just above the July 10 base at 113.36. Further support lies at 112.39, the 61.8% retracement.

Initial resistance is at last week's high of 115.56, followed by 115.75, the previous uptrend support line that runs from the May 17 trough of 108.99. A break below the uptrend support line that runs from 108.99 is putting the medium-term uptrend from 108.99 at risk. But the weekly indicators are still mixed with the MACD still in positive mode and the stochastic indicator bearish.