Fresh bullish acceleration on Tuesday turns bias higher after Monday’s action showed no clear direction and ended in long-legged Doji. The Japanese yen was hurt by strong fall of Asian emerging currencies and remains pressured by fears of escalation of trade conflict between US and China. Daily cloud top (111.54) was cracked on today’s rally, but bulls face again strong headwinds here, as previous attempts to break above cloud top were short-lived, highlighting the strength of the barrier. Momentum studies are bullish setup and head north, supporting the advance, after bulls broke above converged 5/10/55SMA’s (111.20). Firm break above thick daily cloud would generate strong bullish signal for extension through recent highs at 111.75/83 and attack at next key barrier at 111.87 (Fibo 61.8% of 113.17/109.77 descend. Alternatively, repeated failure to break above cloud would signal prolonged sideways mode within thick daily cloud (110.64/111.54).
Res: 111.56, 111.75, 111.87, 112.15
Sup: 111.20, 111.05, 110.99, 110.64
