The pair accelerated lower in Asia on Friday and extend weakness in early European trading, registering drop of 0.6% and marking yen as top gainer of the session.
Fresh weakness generated negative signal on break of the floor of two-week congestion (106.65) and Fibo support at 106.44 (50% retracement of larger 101.18/111.71 ascend). Bears focus key supports at 106.07 (23 June low) and 105.98 (6 June low) break of which could spark stronger bearish acceleration and expose key Fibo support at 105.20 (61.8% of 101.18/111.71).
Daily studies are in firm bearish setup and support the action, however, bears may hesitate to break lower on first attempt and consolidate before resuming lower.
Fresh strength of safe-haven Japanese yen was sparked by China’s countermeasures that deepened political tensions between two countries, while dollar remains under strong pressure on rising new Covid-19 cases and strengthening Euro on improved sentiment in the Eurozone after leaders agreed on massive stimulus package.
Res: 106.65, 106.88, 107.00, 107.20
Sup: 106.07, 105.98, 105.50, 105.20
