The pair holds in red for the second day and extends pullback after repeated failure at 111 zone and rejection under pivotal 200SMA barrier.
Tuesday’s bearish outside day and fading risk sentiment on India-Pakistan tension, add to negative signals and threatening of reversal.
Fresh safe-haven demand boosts yen and could help pair’s break through strong supports at 110.30/00 zone (20/55/30 SMA’s/weekly cloud top) which could generate stronger reversal signal.
South-heading daily momentum/RSI and Stochastic support scenario, as firm break below 110 handle would open way towards thin daily cloud (spanned between 109.40 and 109.02).
Reversing converged 5/10SMA’s offer solid resistance at 110.68 which should limit the upside and keep fresh bears in play, however, ability to hold above 110 zone would keep the pair in in extended range-trading.
Res: 110.68, 111.07, 111.23, 111.30
Sup: 110.30, 110.00, 109.40, 109.02
