Bears look for fresh signal on eventual close below pivotal Fibo support
The pair fell to new 1 ½ month low on Thursday, maintaining strong bearish tone for the fourth straight day.
Bears were little affected by Fed on overnight’s brief jump to 105.17, before returning below 105 handle.
The Bank of Japan, in its policy meeting today, kept monetary policy unchanged as expected and offered slightly upgraded view on the economy than in July, suggesting that there is no need for expansion of stimulus for the time being.
Fresh extension lower probes again through pivotal Fibo support at 104.86 (76.4% of 104.18/107.04) which was cracked on Wednesday but failed to register daily close below.
Sustained break here would further weaken near-term structure for push towards key support at 104.18 (31 July low).
Bearish setup of daily moving averages maintains pressure, however, oversold stochastic and 14-d momentum bounce, warn of consolidation preceding fresh push lower.
Selling upticks remains favored scenario as long as price action stays under falling daily Tenkan-sen (105.53).
Res: 104.86; 105.17; 105.28; 105.53
Sup: 104.68; 104.18; 103.51; 103.09