Technical Analysis: USDJPY confronts 61.8% Fibonacci while consolidating losses from Fed's shock rate cut
The US Federal Reserve's emergency rate cut of 0.50% dragged the USDJPY pair to five-month lows on Tuesday. However, the following pullback currently confronts 61.8% Fibonacci retracement of its run-up from August 2019 to February 2020 upside, around 107.40, amid oversold RSI. Hence, the quote is likely to extend the recent recovery towards January month low surrounding 107.65/70. However, a confluence of 50% Fibonacci retracement and 200-day SMA near 108.30/40 will be the key upside barrier for the pair traders to watch.
Meanwhile, pair's further declines below the recent low close to 106.80 highlights October 2019 bottom near 106.50 as follow-on rest point. Though, the pair's extended downpour below 106.50 will make it vulnerable to plunge towards 105.00 and August 2019 low of 104.45.