The pair ticks higher on Monday following last Friday’s 0.9% fall that contained by the top of daily cloud.
Thickening cloud continues to underpin the action today, but recovery attempts were so far capped by broken 55SMA (110.24) now reverted to resistance, as Friday’s close below it was negative signal.
Bearish setup of daily techs suggests that the downside remains vulnerable and corrective upticks could be seen as positioning.
However, bears may show stronger hesitation at cloud top (109.95), but bearish bias is expected to remain in play while extended upticks are capped under daily Tenkan-sen (110.80).
Eventual clear break of daily cloud top would open way towards next key supports at 109.25/15 (Fibo 38.2% of 104.59/112.13 / daily cloud base) violation of which will signal reversal.
Only return and close above 110.90/95 zone (Thu/Fri highs, reinforced by daily Kijun-sen) would sideline bears.
Res: 110.24, 110.58, 110.80, 110.95
Sup: 109.95, 109.71, 109.25, 109.15
