The pair dipped near 107 handle on Monday after BoJ announced an expansion of stimulus, pledging to buy an unlimited amount of bonds to keep low borrowing costs and cushion strong negative impact on the economy from coronavirus lockdown.
Fresh weakness probes through the floor of seven-day range and eyes key supports at 107.01 (daily cloud top), 106.92 ( double-bottom of 1/15 Apr) and 106.70 (daily cloud base) where solid bids lay but break lower would spark stronger bearish acceleration.
Daily studies support scenario (MA’s remain in full bullish setup, momentum is negative and stochastic / RSI head south) which requires confirmation on clear break below 107.01/106.70 support zone.
Caution on failure to break lower (as daily cloud is thickening and underpins) that would signal extended range-trading.
Res: 107.53, 107.69, 107.88, 108.29
Sup: 107.01, 106.92, 106.70, 106.44
