USD/JPY Technical Analysis: flirting with trendline from March lows amid risk aversion

• Currently, the USD/JPY pair is trading just above the support of the trendline sloping higher from March lows, having printed a nine-day low of 111.82 earlier today.
• A daily close below the trendline support of 112.06 would confirm a bullish-to-bearish trend change and shift risk in favor of a drop to the 200-day EMA of 110.95.
• On the higher side, a move above 112.89 (Oct. 22 high) would imply that the pullback from the recent high of 114.55 has made a temporary low below 112.00 and could yield a move higher toward 114.00.
• The bearish scenario looks likely as the S&P 500 futures have dropped well below the key support of the 50-week EMA, emboldening the bears.

Daily Chart

Spot Rate: 112.15

Daily High: 112.24

Daly Low: 111.82

Trend: Bearish below trendline

Resistance

R1: 112.24 (session high)

R2: 112.42 (10-day EMA)

R3: 112.89 (Oct. 22 high)

Support

S1: 112.06 (trendline support)

S2: 111.82 (session low)

S3: 111.55 (100-day EMA)