The pair stays firmly in red and extends weakness below 106 handle on Friday to post new low at 105.54 (the lowest since early Nov 2016).
Strong bearish signal was generated on Thursday’s close below key double-Fibonacci supports at 106.66/51 (Fibo 38.2% of 75.65/125.84, Oct 2011/June 2015 ascend / Fibo 61.8% of 98.99/118.66, Jun/Dec 2016 rally), suggesting that bears may extend further.
The pair is on track for strong bearish weekly close (the biggest weekly loss since July 2016) which adds on mounting downside pressure, as the dollar remains under strong pressure due to various factors and hit the lowest in three years against its major counterparts on Friday, with no signs of any stronger recovery for now.
Yen reacted mildly on reappointment of Haruhiko Kuroda as BoJ governor, although Kuroda and his team is expected to maintain central bank’s ultra-loose policy.
Firmly bearish daily/weekly techs are supportive, however, oversold daily studies warn of correction, but without firmer bullish signal being generated so far.
Bears could travel towards 103.63 (Fibo 76.4% of 98.99/118.66 ascend), with psychological 100 zone expected to come in focus on further bearish acceleration.
Broken lower 20-d Bollinger band marks initial resistance at 106.31 (also session high), followed by broken key Fibo supports at 106.51/66, with stronger upticks to be capped by falling daily Tenkan-sen (currently at 107.66).
Res: 106.31, 106.51, 107.00, 107.31
Sup: 105.54, 105.00, 104.48, 104.00