Extended range likely to precede fresh attack at key supports at 106.92/70
The pair regained traction and jumped from the lowest of the day at 107.28 to hit daily high at 107.82, but the action remains within narrow range which extends into fourth day.
Falling 10DMA continues to cap for past six days, with near-term action being weighed by converged daily MA within 108.22/85 zone, which also formed a multiple bear-crosses and add to negative pressure.
The upside is likely to remain limited as markets await for more negative impacts from pandemic (with oil price’s slump being among first signs) that would revive yen’s safe-haven appeal and push the pair lower.
Violation of key supports at 106.92 (1 / 15 Apr double-bottom) and 106.70 (daily cloud top / weekly Kijun-sen) is needed to spark fresh acceleration lower.
Res: 107.88; 108.30; 108.56; 108.85
Sup: 107.28; 106.92; 104.70; 106.44