Bears are taking a breather on Monday after last Thu/Fri action being firmly in red, as the dollar regained footing after being hit by US government shutdown.
However, recovery attempts from session low at 110.49 (also low of last Friday) were limited under 111.00 barrier and keep intact bearish bias for renewed attack at key supports at 110.15/00 (Fibo 61.8% of 107.31/114.73 rally / psychological support).
Bank of Japan’s policy meeting is coming in focus (due tomorrow) with the central bank expected to maintain its ultra-easy policy, which would disappoint some trader who expect some shift in the policy.
Favored near-term scenario sees eventual break through 110.15/00 pivots (close below 110.15, Fibo 61.8% of 107.31/114.73 ascend is needed to generate strong bearish signal) and fresh acceleration towards next target at 109.06 (Fibo 76.4%).
Falling 10 SMA continues to pressure and marks resistance at 111.11, guarding upper pivots at 111.48 (last Thu recovery peak) and 111.70 (200SMA).
Res: 110.91, 111.11, 111.48, 111.70
Sup: 110.49, 110.15, 110.00, 109.54