The pair starts week in positive mode and cracked pivotal barrier at 112.74 (Fibo 38.2% of 114.54/111.62 bear-leg) after last week’s repeated failures here. Reduced safe-haven demand keeps yen at the back foot, with bullishly aligned studies on daily chart, being supportive. Sustained break above 112.74 is needed to signal and end of congestion (112.73/112) and open way for further recovery of the bear-leg from 114.54. Sideways-moving 20SMA marks next pivot at 112.96, followed by 113.08 (Fibo 50%) and 113.43 (Fibo 61.8%) break of which would confirm higher low at 111.62 (15 Oct low) and re-focus key resistance at 114.54 (03/04 Oct highs). Failure to clear 112.74 barrier would keep the pair within the range and would keep the downside vulnerable. Initial support lays at 112.36 (10SMA), while return below 55SMA (111.90) would bring bears fully in play.
Res: 112.96, 113.08, 113.43, 113.86
Sup: 113.36, 112.14, 111.90, 111.62
