The pair extended Tuesday’s strong recovery rally in early Wednesday’s trading but gains were so far short-lived and capped by daily Tenkan-sen at 109.77 which was briefly pierced on extension to session high at 109.82.
Subsequent easing suggests that recovery might be over, as the move was seen as correction of larger bear-trend from 114.49 which eyes target at 108.11 (17 Apr low).
However, the pair may remain in extended consolidation which should stay capped by daily Tenkan-sen and psychological 110.00 barrier (also Fibo 61.8% of 110.94/108.60 downleg / falling 20SMA) before bears resume).
Conversely, extension above 110.00 barrier would ease immediate bearish pressure, while extension above daily Kijun-sen (110.50) is needed to neutralize.
Res: 109.82, 110.00, 110.36, 110.50
Sup: 109.32, 108.85, 108.60, 108.11
