Two-day recovery from new one-month low at 111.62, boosted by reduced safe-haven demand and signals that Fed would continue to hike interest rates, faced strong resistance at pivotal 112.74 barrier (Fibo 38.2% retracement of steep 114.54/111.62 fall). Fresh bulls are pausing, with significant risk that recovery might capped here as bearish momentum continues to strengthen and freshly formed daily Tenkan-sen / Kijun-sen bear-cross, just above recovery high, weigh. Negative scenario looks for today’s close in red as initial signal, with confirmation of reversal on return below 112 handle (Wednesday’s low). Retest of 111.62 would signal continuation of larger downtrend and attack at next strong supports at 111.47/40 (daily cloud top / 100SMA). Conversely, break and close above 112.74 Fibo barrier, would signal recovery extension and expose barriers at 112.98 (20SMA) and 113.42 (Fibo 61.8% of 114.54/111.62 fall).
Res: 112.74, 112.98, 113.42, 113.85
Sup: 112.43, 112.00, 111.86, 111.62
