The pair advanced strongly on Tuesday, driven by fresh strength of the US dollar and less hawkish than expected BoJ operations which increased pressure on yen.
Friday’s hammer candle signaled strong downside rejection and basing just ahead of daily cloud base, with today’s acceleration higher turning near-term focus higher.
Fresh bulls pressure top of thick daily cloud (111.57) again, after last week’s probes above failed to sustain break. Bull-cross of daily Tenkan-sen/Kijun-sen and fresh bullish momentum support the action for another attempt above daily cloud and test of key barriers at 111.82/87 (29 Aug high/Fibo 61.8% of 113.17/109.77 descend) in extension.
Converged 10/30/55SMA’s at 111 zone mark strong support which is expected to keep the downside protected.
Res: 111.57, 111.87, 112.15, 112.37
Sup: 111.19, 111.00, 110.90, 110.68
