Bears are taking a breather as markets await results from trade talks
Bears are taking a breather on Friday following steep fall in past three days that cracked key support at 109.71 (25 Mar low) but s far failing to register close below.
Overextended daily techs and markets awaiting news from US/China trade talks, keep bears temporarily on hold, but fears that talks would end without deal, with potential escalation of trade conflict, keep risk-off mode in play and support safe-haven yen.
End-of-week profit-taking may push the price higher, with upticks to be capped by thick daily cloud base (110.31) to keep larger bears intact.
The pair is on track for the fourth bearish weekly close that reinforces bearish bias, but sustained break below key supports at 109.71 (25 Mar low) and 109.58 (weekly cloud base) and 109.41 (Fibo 38.2% of 104.57/112.40) is needed to confirm scenario and spark fresh bearish acceleration.
Conversely, penetration and close within daily cloud would sideline immediate bears, but only extension above cloud top (110.81) would neutralize and signal reversal.
Res: 110.00; 110.14; 110.31; 110.55
Sup: 109.71; 109.58; 109.41; 109.00