The pair accelerated lower on Monday, extending last week’s fall, which marked the biggest weekly loss since the second week of February.
Fresh weakness emerges after consolidation of last Thu/Fri, shaped in double long-legged Doji.
Rising safe-haven demand, fueled by geopolitical tensions, boosted yen which hit one-month high against dollar on Monday.
Today’s fall eventually broke through cracked pivot at 111.97 (Fibo 61.8% of 110.38/114.54 rally) and heading towards daily cloud top at 111.47.
Daily cloud is spanned between 111.47 and 110.93 and together with 110.76 (Fibo 38.2% of larger 104.63/114.54 uptrend) marks pivotal supports, break of which would generate stronger bearish signal.
Bearish momentum continues to strengthen on daily chart and supports further weakness, but bears may take a breather on approach to cloud top as slow stochastic turned sideways in oversold zone.
Extended upticks should be capped by broken 30SMA (112.45) to keep bears in play.
Res: 111.97, 112.23, 112.45, 112.95
Sup: 111.62, 111.47, 111.29, 110.93
