The pair stands at the back foot in early Friday’s trading and maintaining negative tone after strong fall on Thursday.
The dollar came under pressure on strong rhetoric from G7 which reduced risk sentiment as G7 leaders are set to clash with President Trump’s policy regarding tariffs which threatens of global trade war.
Recovery rally from 108.11 (29 May low) stalled at strong 200SMA barrier, failing to clearly break higher on repeated attempt.
Subsequent fall closed below initial support at 109.75 (daily Kijun-sen) and weakened near-term structure on formation of bearish Outside Day.
Pivotal support at 109.44 (daily 10SMA / Fibo 38.2% of 108.11/110.26) holds for now, but risk of further weakness exists.
South-heading 14-d momentum and slow stochastic support the notion as thick hourly cloud (base lays at 109.86) weighs.
Firm break below 109.44 would generate strong bearish signal for extension of pullback from 110.26/22 double-top, towards daily Tenkan-sen (109.18) and possible extension towards the top of rising and widening daily cloud (108.62) on stronger bearish acceleration.
Conversely, bullish signal could be expected on close above daily Kijun-sen, which would turn near-term focus higher again.
Res: 109.75, 110.00, 110.16, 110.26
Sup: 109.44, 109.18, 108.93, 108.62
