The pair holds firm on Friday and extends consolidation under new recovery high at 109.46 (weekly 100SMA) and showed no reaction on BoJ’s policy decision, released earlier today.
The central bank kept policy steady but removed timeframe for achieving inflation target.
Bulls eye barrier at 109.68 (Fibo 50% of 114.73/104.63 fall) which guards key barriers at 110.00 (psychological) and 110.24 (200SMA).
Bulls show hesitation above daily cloud, break of which was strong bullish signal, but narrow ranges so far diminish risk of pullback, signaled by overbought daily studies and Thursday’s Hanging Man candle.
Broken 100SMA (108.90) is expected to hold and keep bulls intact for fresh upside action, as dollar maintains strong bullish tone.
The pair is on track for the fifth straight bullish weekly close, which offers additional support.
Bearish scenario requires break and close below 100SMA to sideline immediate bulls and signal correction.
Res: 109.46, 109.68, 110.00, 110.24
Sup: 109.10, 108.90, 108.39, 108.25
