The pair fell back to 114.50 (rising daily Tenkan-sen support) after another failure above daily Ichimoku cloud top.
Today’s rally stalled at 115.18, well below last Friday’s spike to 115.49, signaling repeated rejection above 114.99/115.08 pivots (daily cloud top / 50% of 118.59/111.57 downleg).
Daily Tenkan-sen that tracks the rally since Feb 28, offers solid support, also guarding cloud base at 114.29.
Loss of these supports would generate stronger bearish signal.
Meantime, the pair is expected to remain in neutral mode while holding within the cloud, ahead of tomorrow’s FOMC meeting.
As market participants are convinced that Fed will hike rates tomorrow, focus is turning on Yellen’s comments and grade of hawkishness regarding next increase of interest rates.
Bullish scenario requires final close above 115.00 resistance zone to generate positive signal for fresh acceleration higher that may extend towards 115.91 barrier ( Fibo 61.8% of 118.59/111.57 descend).
Res: 114.99; 115.18; 115.49; 115.91
Sup: 114.51; 114.29; 114.00; 113.53