The pair extended rally on Friday and hit new three-week high at 110.90 after BoJ decided to keep ultra-easy policy on today’s meeting.
The dollar remains bid after hawkish Fed and Thursday’s close above strong option-barrier at 110.50 but showed hesitation on approach to psychological 111 resistance.
Broken 110.50 barrier contained consolidation for now, while deeper dips are expected to find ground above key 200SMA support (110.15) to keep bulls intact.
Bullish configuration of daily techs is supportive for further advance as formation of 5/200SMA Golden cross further underpins the action.
Current wave C of five-wave sequence from 108.11, hit its FE 76.4% at 110.85 and eyes Fibo 100% expansion at 111.36, to validate wave principles and open way for further advance on break above key barriers at 111.36/39 (FE 100% / 21 May high).
The pair is on track for strong bullish weekly close which is also positive signal.
Only return and weekly close below 200SMA would weaken near-term structure.
Res: 110.90, 111.39, 111.59, 112.00
Sup: 110.37, 110.15, 109.85, 109.75
