Fresh advance offsets negative signal from Wed’s candle with large upper shadow
The dollar regained traction and jumped on Thursday, neutralizing negative signal from Wednesday’s bearish candle with long upper shadow, left on post- dovish Fed drop.
Near-term action remains underpinned by bear-trap under 107.75 Fibo support and rising thick daily cloud, keeping in play hopes for further advance.
Bulls need confirmation on close above cracked Fibo barrier at 108.81 (38.2% of 110.96/107.47) and further positive signal on break above daily Kijun-sen (109.22) that would confirm reversal and a higher low at 107.47 correction low.
Daily Tenkan-sen (108.27) offers solid support which guards daily cloud top (108.00).
Res: 109.10; 109.22; 109.63; 110.00
Sup: 108.81; 108.43; 108.27; 108.00