Strong upside rejection on Friday and today’s fresh weakness that pressures daily cloud base at 114.51, weakened near-term structure and give initial signal of false break above the cloud. Increased downside risk could be expected on firm break below widening daily cloud, with bearish divergence on daily chart slow stochastic, supporting the notion. Next pivotal supports lay at 114.10/03 (rising daily Tenkan-sen/Fibo 38.2% of 111.67/115.49 rally) and extended dips may find footstep here. Otherwise, break lower would generate stronger reversal signals. Meantime, hopes of fresh upside action are expected to stay alive while cloud base holds, as Ichimoku studies on daily chart are supportive. Close above daily cloud and extension above Friday’s high at 115.49, are required to signal bullish continuation and expose next target at 115.91 (Fibo 61.8%).
Res: 114.99, 115.49, 115.91, 116.33
Sup: 114.51, 114.24, 114.10, 113.65
