Cable is trading around 1.2500 handle in early Wednesday following Tuesday’s spike to 1.2345 support, where fall was contained by daily Kijun-sen. Subsequent sharp recovery confirmed short-lived break below thin daily cloud (spanned between 1.2388 and 1.2426), as yesterday’s strong downside rejection that left long-tailed daily candle that now underpins for fresh upside action. Corrective easing from yesterday’s high at 1.2544 should stay above daily cloud to keep fresh near-term bulls in play. Cracked daily Tenkan-sen (currently at 1.2525) is still acting as significant resistance and firm break above is to trigger fresh acceleration higher. Conversely, repeated violation of daily cloud would signal fresh weakness.
Res: 1.2500, 1.2525, 1.2544, 1.2567
Sup: 1.2473, 1.2426, 1.2388, 1.2345