The pair bounced higher in Asia, breaking above three-day congestion and hitting one-week high at 106.94, on easing fears over North Korea. No significant reaction was seen on BOJ rate decision and remarks from BoJ chief Kuroda, who confirmed that the central bank will continue its ultra-light policy until inflation reaches target at 2.0%. Today’s rally was positive signal and improved near-term structure, as fresh bullish momentum is building. Break above initial Fibo/10SMA barrier at 106.44 extended recovery and cracked next pivot at 106.76 (falling 20SMA/Fibo 61.8% of 17.67/105.24), signaling further advance. US jobs data could spark fresh bullish acceleration on strong numbers and could challenge lower tops at 107.67 (27 Feb) and 107.90 (21 Feb) on sustained break above 107.24 (Fibo 38.2% of 110.48/105.24 bear-leg). Broken 10 SMA now acts as initial support (106.41) which is expected to hold and keep fresh bulls in play.
Res: 106.94, 107.24, 107.67, 107.90
Sup: 106.41, 106.15, 105.89, 105.45
