The pair stays at the back foot on Friday and retests strong support at 111.80, provided by daily cloud top / 100SMA.
The support has already contained dips of past two days and daily cloud (spanned between 111.23/83) is expected to hold pullback after Thursday’s strong upside rejection just under next target at 113.05 (Fibo 76.4% of 114.36/108.80 descend), as overall structure is bullish and the pair is on track for the third consecutive bullish weekly close.
Alternative scenario sees increased downside risk on reversal below daily cloud which would expose pivotal supports at 111.11 and 110.86 (26 June low / daily Kijun-sen) loss of which will generate stronger bearish signal.
Res: 112.17, 112.46, 112.92, 113.05
Sup: 111.80, 111.46, 111.23, 110.86
