Bullish bias above broken Fibo at 106.88 looks for retest of 55DMA
Bulls regain traction on Monday and probe again above 107 barrier following last Thursday’s strong upside rejection at 55DMA (107.21) and Friday’s Doji candle that signaled indecision.
Yen came under fresh pressure after Japan downgraded Q2GDP (0.2% q/q vs preliminary 1.5%) as trade war impact the economy.
Fresh bulls are underpinned by rising bullish momentum and daily 10/20/30DMA’s in bullish configuration and look for renewed attack at 55DMA, break of which would expose another pivotal barrier at 107.45 (Fibo 61.8% of 109.31/104.44 fall), as well as thin falling daily cloud (107.55/85).
Daily close above 107 handle would generate initial bullish signal which would require confirmation on close above 55DMA).
Broken Fibo 50% barrier at 106.88 now reverted to support and expected to maintain bullish bias while keeping the downside protected.
Res: 107.10; 107.21; 107.45; 107.55
Sup: 106.88; 106.76; 106.62; 106.44