The pair extends recovery into the second day after strong fall last Fri/Mon stalled on approach to daily cloud base (112.16) and greenback was fueled by safe-haven buying on strong fall of stocks.
Recovery attacks daily cloud top (112.94) with break here to generate bullish signal for extension towards next pivots at 113.03 (Fibo 38.2% of 114.20/112.30) and 113.25 (Fibo 50% / daily Tenkan-sen).
Break and close above the latter is needed to confirm reversal and signal further recovery.
Momentum emerged into positive territory on daily chart and slow stochastic reversing from oversold territory, support scenario.
On the other side, failure to break above cloud and repeated close under cloud top, would keep the downside vulnerable.
Res: 113.03, 113.25, 113.48, 113.63
Sup: 112.79, 112.64, 112.30, 112.16
